Michigan — Hiring & Onboarding

Michigan employers must report all newly hired and rehired employees to the Michigan New Hire Operations Center within 20 days of the hire date (the date the employee first performs services for pay). A rehired employee must be reported only if separated from employment for at least 60 consecutive days. Employers report the employee's name, address, Social Security number, and date of hire, along with the employer's name, address, and Federal Employer Identification Number. This federal requirement is administered by the Michigan Department of Health and Human Services Office of Child Support to enforce child support obligations and prevent fraud in welfare, unemployment, and workers' compensation programs.

Source: Michigan New Hire Reporting, MDHHS | Michigan Form 3281, State of Michigan New Hire Reporting Form

Michigan's Elliott-Larsen Civil Rights Act prohibits most employers from inquiring about or maintaining records of misdemeanor arrests that did not result in conviction. Under MCL 37.2205a(1), an employer, employment agency, or labor organization—other than a state or local law enforcement agency—shall not, in connection with an application for employment or the terms and conditions of employment:

• Request information regarding a misdemeanor arrest, detention, or disposition where a conviction did not result;
• Make a record of such information; or
• Maintain a record of such information.

This restriction applies at every stage of the employment relationship: on job applications, during interviews, in background-check requests to consumer reporting agencies, and in personnel files. An employer violates the statute if it asks an applicant "Have you ever been arrested for a misdemeanor?" or maintains background-check reports that include non-conviction misdemeanor arrest records, even if the employer does not use that information in its hiring decision.

What employers MAY ask about. The statute does not restrict inquiries into:

• Misdemeanor convictions (arrests that resulted in conviction are permissible subjects of inquiry);
• Felony arrests and charges before conviction or dismissal (MCL 37.2205a(1) expressly states "This section does not apply to information relative to a felony charge before conviction or dismissal");
• Felony convictions.

Employers may therefore ask on applications or in interviews whether the applicant has been convicted of a misdemeanor or felony, or whether the applicant has pending felony charges. The statute draws a bright line: misdemeanor arrests without conviction are off-limits; everything else—misdemeanor convictions, felony arrests (even if not yet resolved), and felony convictions—remains permissible under Michigan state law, subject to federal Title VII and EEOC guidance on individualized assessment of conviction records.

Applicant protection from perjury liability. MCL 37.2205a(1) provides that an applicant "is not guilty of perjury or otherwise for giving a false statement by failing to recite or acknowledge information the person has a civil right to withhold" under the statute. If an employer unlawfully asks about misdemeanor arrests without conviction and the applicant answers "no" despite having such an arrest, the applicant cannot be prosecuted for perjury or sued for fraud based on that answer.

Law-enforcement exemption. The prohibition does not apply to law enforcement agencies of the state or a political subdivision, or to the Michigan Department of Corrections. MCL 37.2205a(2) defines "law enforcement agency" to include the Department of Corrections.

Enforcement. The Elliott-Larsen Civil Rights Act is administered by the Michigan Department of Civil Rights. An applicant or employee who believes an employer has requested, made, or maintained a record of a non-conviction misdemeanor arrest in violation of MCL 37.2205a may file a charge with the MDCR or bring a civil action under the Act's remedial provisions.

Intersection with expunged and set-aside records. Michigan law permits certain criminal records to be expunged or set aside (for example, under MCL 780.621 et seq. for setting aside convictions, or the Holmes Youthful Trainee Act, MCL 762.11 et seq.). With the exception of disclosures to law enforcement agencies, it is not unlawful for an applicant to withhold information about criminal activity for which the records have been sealed or expunged. Misdemeanor arrests without conviction that appear on background checks despite the statutory prohibition, and sealed or expunged records, may both appear on commercially obtained reports; employers must ensure their application forms and background-check processes comply with MCL 37.2205a and do not solicit or retain prohibited information.

Source: Mich. Comp. Laws § 37.2205a