House Bill 4324 requires the Michigan Department of Treasury to provide taxpayers with information regarding the classification of individuals as employees or independent contractors. Starting with the 2025 tax year, the annual income tax instruction booklet must include a page explaining the rules and factors for this classification. This page will also provide contact information for reporting suspected payroll fraud to the Department of Labor and Economic Opportunity and the Attorney General. Additionally, the department will send a direct notice containing this information to each individual reported on a Form 1099-MISC filed with the state. The bill aims to inform individual taxpayers about worker classification and provide resources for reporting potential misclassification.
House Bill 4322 amends Michigan's wage and fringe benefits act, primarily addressing the misclassification of employees as independent contractors, which affects both employers and individuals performing work. The bill establishes a new legal definition for "independent contractor" and explicitly prohibits employers from classifying, reporting, or treating an employee as an independent contractor, placing the burden of proof on the alleged violator. It significantly increases penalties for misclassification, including a 100% annual penalty on unpaid wages and benefits, up to triple exemplary damages, and a civil fine up to $10,000. For misclassification violations, 50% of collected penalties and damages will be paid to the affected employee, and a new "wages and fringe benefits fund" is created to support enforcement.
Senate Bill 262 updates the State Employees' Retirement Act to provide new annuity options for state employees participating in Tier 2. It requires the state's retirement system to offer access to fixed annuity options, including those with a guaranteed lifetime income, and may also offer variable annuity options. The investment board is tasked with selecting at least two qualified annuity providers through a competitive process. These selected providers must meet specific financial strength, stability, and regulatory compliance criteria.
House Bill 4435 proposes to repeal Section 17 of the Michigan Occupational Safety and Health Act. This section currently prohibits the state from creating new rules related to workplace ergonomics. If enacted, this bill would remove that prohibition, allowing the state to develop and implement health and safety standards concerning ergonomics in various workplaces. This change could affect Michigan employers and their employees by potentially introducing new requirements to prevent injuries related to repetitive motions or other ergonomic hazards.
HB 4440 proposes to create the Infectious Disease Worker Safety Commission within the Michigan Department of Labor and Economic Opportunity. This commission, comprised of representatives from labor unions, management, and health care specialists, will determine best practices for employee safety during declared infectious disease emergencies. These practices include guidelines for personal protective equipment, hand hygiene, and distancing requirements. The commission must prepare and publicly release a report of these determinations, which employers are required to post at their workplaces. If an employer fails to post the report, they cannot take disciplinary action against an employee who leaves or refuses to report to work during an infectious disease emergency.
SB 301 establishes a corporate income tax credit for employers who offer paid leave to employees donating organs. Beginning in 2026, eligible employers can claim a credit equal to 100% of the wages paid to an employee during up to 12 weeks of organ donation leave. To qualify, this leave must be separate from other paid leave benefits and compensate the employee at their full normal wage. The credit is non-refundable but can be carried forward for up to three years to offset future tax liabilities.
Senate Bill 310 establishes the tri-share child care program within the Department of Lifelong Education, Advancement, and Potential, continuing a previous pilot project. It also creates a dedicated tri-share child care fund in the state treasury to support this program. The department will administer this fund, using appropriated money to oversee the program and provide funding to existing child care facilitator hubs. New hubs may also be funded if sufficient resources are available to expand coverage to more counties or serve statewide employers. This aims to support child care access for families and providers.
Senate Bill 308 creates a new refundable "working parent tax credit" for eligible taxpayers in Michigan, effective for tax years beginning January 1, 2025. This credit provides $5,500 per qualified dependent aged four or younger, for taxpayers with a household income not exceeding 150% of the state median income. The bill also establishes a program for the Department to issue monthly advance payments of this credit to qualified taxpayers. However, taxpayers enrolled in an Rx Kids program are not eligible for this credit.
House Bill 4514 amends the Michigan antitrust reform act to prohibit employers from requiring noncompete agreements for physicians. Specifically, it states that employers cannot obtain noncompete agreements from physicians. Any noncompete agreements entered into between an employer and a physician before this change takes effect would be voided if they are contrary to this new prohibition. The bill defines "physician" by referencing the public health code.
HB 4533 amends Michigan's sentencing guidelines to specifically address crimes involving assaults, battering, or endangering healthcare professionals. The bill directly affects healthcare workers who are victims of such attacks, as well as courts that determine sentences for offenders. It establishes new, separate sentencing guidelines under MCL 777.16d for these offenses, ensuring they are treated with appropriate severity distinct from general assault charges. This change creates a clear policy mechanism for judges to apply consistent, elevated penalties when healthcare workers are targeted.