House Resolution 342 urges the U.S. House of Representatives to reject Amendment 041 to the BUILD America 250 Act, a provision that would shield rideshare and delivery companies from vicarious liability for injuries or damages caused by their drivers. The resolution argues that this amendment would prevent victims from holding platforms accountable under state law unless the company is found to be grossly negligent or criminally wrongdoers, citing concerns about sexual assault cases on these apps. By blocking this federal preemption, the bill aims to preserve states' authority to regulate liability and ensure companies can be held responsible for harms arising from their operations.
HB 5579, the "Responsible Artificial Intelligence Security for Employees Act," prohibits most employers from using automated decisions tools (like AI for hiring) or electronic monitoring tools (like tracking software) for employment decisions affecting employees or job applicants. Employers may only use these tools for specific, limited purposes, such as screening large applicant volumes for job skills or monitoring essential work functions, safety, or compliance. The bill requires employers to obtain written consent from workers, provide clear notice of monitoring, ensure data accuracy, and use tools in the least invasive way possible. It directly affects all Michigan employers and their employees/applicants, creating new rules for technology use in the workplace.
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.
SB 6 updates Michigan's wage law to strengthen employee protections around pay deductions. It requires written employee consent for most wage deductions (including charitable contributions to nonprofits) and limits overpayment deductions to 15% of gross wages without consent. The bill clarifies that fringe benefits (like vacation pay) are separate from wages and creates new rules for employers dealing with independent contractors. These changes directly affect employers across Michigan and their employees who receive wages or fringe benefits.
HB 5007 amends Michigan's Employment Security Act to update how "employment" is defined for unemployment benefits eligibility. It changes the standard for classifying workers as employees (requiring benefits coverage) versus independent contractors, effective January 1, 2026. Under the new rule, most workers must be classified as employees unless they meet all three strict criteria: no employer control, services outside the employer's usual business, and the worker operating as an independent business. This directly affects employers and workers in Michigan who currently classify individuals as independent contractors, particularly in gig economy and service roles. The bill maintains current rules (using the IRS 20-factor test) until 2026, with specific exceptions for certain visa holders and federally certified employers.
