Salary Transparency Laws in Michigan: What Employers Must Disclose

The federal Equal Pay Act, 29 U.S.C. § 206(d), requires that men and women receive equal pay for substantially equal work in the same establishment. The EEOC enforces this statute for employers with 15 or more employees. The Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq., also requires employers to maintain wage records, though it does not mandate public disclosure of salary ranges.

Under the National Labor Relations Act (NLRA), 29 U.S.C. § 157, employees at employers with 5 or more employees have the right to discuss wages, hours, and working conditions with coworkers. Employers cannot prohibit these conversations or retaliate against employees for engaging in them. The NLRB enforces this protection.

Federally, there is no blanket requirement to post salary ranges in job postings. However, some federal contractors must comply with wage transparency requirements under Executive Order 11246 if they contract with the federal government. The Department of Labor's Wage and Hour Division enforces FLSA wage record-keeping requirements.

Michigan does not have a standalone salary transparency statute. The Michigan Payment of Wages Law, MCL 408.474, requires employers to clearly communicate wage rates, but it does not require disclosure of salary ranges in job postings or to the public. Michigan employers must inform employees of their wage rate and pay frequency before hiring or within the first week of employment.

Michigan adopted the Elliott-Larsen Civil Rights Act, MCL 37.2101 et seq., which prohibits wage discrimination based on protected classes including sex, race, color, national origin, religion, height, weight, marital status, and disability. This mirrors federal protections under Title VII but does not extend specifically to salary transparency.

Unlike states such as California, New York, and Colorado that have enacted salary range disclosure laws, Michigan has not passed legislation mandating that employers include pay ranges in job postings or disclose salary information to job applicants and employees. Employers in Michigan retain discretion over wage transparency practices, subject to the constraints of federal law and Michigan's anti-discrimination statutes.

Employees in Michigan are protected by the NLRA's wage discussion provisions at the federal level. The Michigan Whistleblowers' Protection Act, MCL 469.392, protects employees who report violations of law, but this does not specifically encompass wage transparency complaints unless they involve illegal wage violations.

Michigan law does not establish exceptions to non-existent state salary transparency requirements. However, federal exceptions apply: the Equal Pay Act permits wage differentials if based on seniority systems, merit systems, systems that measure earnings by production, or factors other than sex. Executives and certain highly compensated employees may have limited protections in some contexts.

The NLRA's protection for wage discussions does not extend to supervisors, managers, or independent contractors. Employers can legally maintain pay confidentiality policies that do not prohibit employees from discussing their own wages, though blanket prohibitions on wage discussions remain unenforceable under federal law.

Michigan's at-will employment doctrine means employers can generally set pay practices freely unless they violate a specific statute or public policy. Employers are not required to conduct salary benchmarking studies or market analyses, and they may use different pay structures for different roles without disclosing them.

Unions and collective bargaining agreements may require greater wage transparency, but this is not mandated by state law. Employers can enforce legitimate confidentiality policies that protect trade secrets or business strategy, provided they do not restrict employees' rights to discuss their own wages with coworkers.

Step 1: Document wage information and discrimination evidence. Keep copies of your offer letter, pay stubs, performance reviews, and any communications about compensation. If you discover wage disparities, note the positions, experience levels, performance ratings, and protected characteristics of employees with different pay. Document any retaliation following wage discussions, such as disciplinary action, schedule changes, or termination.

Step 2: Attempt internal resolution if possible. Request a meeting with HR or your direct manager to ask about pay equity or the basis for your wage. Ask for your job description, performance evaluation, and any written compensation policy. If you file an internal complaint, do so in writing and keep a copy. Note that Michigan employers are not required to have a salary transparency policy, so internal resolution may not be available.

Step 3: File with the appropriate agency. For Equal Pay Act or sex-based wage discrimination claims, file a charge with the EEOC within 300 days in Michigan (which is a deferral state; the EEOC will first refer to the Michigan Department of Civil Rights). Alternatively, file directly with the Michigan Department of Civil Rights (MDCR) within 180 days of the discriminatory act. File online at www.eeoc.gov or call 1-800-669-4000. For the MDCR, visit www.michigan.gov/mdcr or call 517-335-3165. Include your name, address, contact information, employer name and location, date of discrimination, and a detailed description of the wage disparity or retaliation.

Step 4: Expect investigation and conciliation. The EEOC or MDCR will investigate your charge, which typically takes 60-90 days but can extend longer. The agency will contact your employer for a written response. You may be asked to provide additional documents, wage histories, or witness information. The agency will attempt conciliation if it finds reasonable cause. If conciliation fails, you may receive a "right to sue" letter, allowing you to file a private lawsuit.

Step 5: Consult an employment attorney if needed. If your charge is rejected or if you want to pursue litigation, hire an employment law attorney licensed in Michigan. Many work on contingency for wage discrimination cases. Your attorney can file a federal lawsuit under the Equal Pay Act in U.S. District Court for the Eastern or Western District of Michigan, or a state lawsuit under the Elliott-Larsen Civil Rights Act in Michigan state court. Remedies include back pay, front pay, liquidated damages, and attorney's fees.