A Michigan Senate committee held its first hearing this week on a bill that would forbid employers from demanding pay histories before offering someone a job.
Senator Sarah Anthony (D-Lansing), the bill sponsor, told the Senate Labor Committee, these practices have helped lock in pay gaps that affect many women earning less than men in similar positions.
“It helps to stop unfair pay practices from following workers from one job to the next and supports greater economic stability for families,” she said. “We know that pay inequity doesn’t just affect a paycheck. It affects every aspect of daily life. Lower wages means families have a harder time affording housing, childcare, groceries, transportation, healthcare, and it becomes harder to save for retirement.”
The bill would also stop forbid employers from requiring information from applicants about history of fringe benefits and credit history – except for finance-related jobs where laws or professional standards require it.
Charity Dean is with the Michigan Black Business Alliance and is a Detroit coffeeshop owner. She said the bill would help more lower-income workers, especially women, rise to positions and paychecks that match their talents.
“When we think about solving the workforce issue, often we think about how can we be creative, how can we create incentives, but also how can we make sure and ensure that there is transparency and equity in our practices,” she said.
Anthony said there are at least 20 other states or local governments that have similar laws on the books. Michigan does not demand previous salary information for state jobs — and even urges state departments to avoid “inadvertently discovering” job applicants’ salary histories — under a 2019 executive directive signed by Governor Gretchen Whitmer.
The current version of the bill was adopted Thursday on a 3-1 party-line vote, but it was not moved to the Senate floor.
Democrats are hoping to come up with a compromise with business groups. Some of the state’s most prominent business organizations including the Michigan Chamber of Commerce, the Michigan Manufacturers Association, the Small Business Association of Michigan, the National Federation of Independent Businesses and the Detroit Regional Chamber are on record opposing the legislation.
