Michigan Employment Screening Overview
Michigan takes a moderate approach to employment screening, with most restrictions applying only to public-sector employers rather than private businesses.
State rules limit when public employers can ask about criminal history and restrict salary history inquiries for state government positions, while private employers generally have more flexibility.
Federal requirements and local ordinances in cities like Detroit may impose additional obligations.
What's Permitted
- Private employers generally permitted to ask about criminal history on applications
- Private employers permitted to request salary history from job applicants
- Private employers permitted to conduct employment credit checks statewide
- Private employers generally permitted to test for marijuana and enforce drug-free policies
What's Prohibited
- Asking about misdemeanor arrests that did not result in conviction
- Requesting disclosure of expunged or set-aside convictions from applicants
- Using sealed criminal records in most private-sector hiring decisions
- Inquiring about criminal history on initial state government job applications
Ban the Box Laws
Public Employers OnlyStatus Summary
Michigan has no statewide private-sector Ban the Box; only state agencies comply with Executive Directive 2018‑4 (https://www.michigan.gov/mdcr/news/releases/2018/0... Local ordinances exist. Follow Elliott‑Larsen (https://www.michigan.gov/-/media/Project/Websites/... and FCRA; Clean Slate seals eligible records (https://www.michigan.gov/msp/services/chr).
Key Requirements
Executive Directive 2018-4
State executive policy for Michigan agencies only:
- Removes criminal history checkbox
- Replaces felony question with affirmation
- Delay inquiries until after interview
- Do not automatically exclude applicants
Sources: https://www.michigan.gov/-/media/Project/Websites/... ; https://www.michigan.gov/formergovernors/recent/sn...
Elliott-Larsen Civil Rights Act (MCL 37.2201 et seq.)
State anti‑discrimination statute limiting inquiries:
- Prohibits misdemeanor arrest inquiries
- Requires individualized assessments for convictions
- Use must relate to job duties
- MDCR enforces discrimination complaints
Sources: https://www.michigan.gov/-/media/Project/Websites/... ; https://www.michigan.gov/-/media/Project/Websites/...
Fair Credit Reporting Act (FCRA)
Federal consumer-reporting requirements for background checks:
- Requires written notice and consent
- Provide report before adverse action
- Follow FCRA adverse action process
- Civil liability for FCRA violations
Source: https://www.michigan.gov/-/media/Project/Websites/...
Detroit Fair Chance Ordinance (city)
Detroit’s local rules for city hiring and contractors:
- Delays conviction inquiries until interview
- Applies to city hiring and contractors
- Incorporates EEOC individualized-assessment principles
- Background checks after qualification determined
Source: https://detroitmi.gov/sites/detroitmi.localhost/fi...
Michigan Clean Slate Law
Automatic sealing/expungement rules affecting disclosures:
- Misdemeanors sealed after seven years
- Felonies sealed after ten years
- Sealed records not reportable
- Applicants need not disclose sealed records
Source: https://www.michigan.gov/-/media/Project/Websites/...
Ban the Box Best Practices for Michigan Employers
- Remove conviction question from public employer initial applications
- Delay criminal-history inquiries until after interview or qualification
- Check municipal rules; note 2018 preemption for private employers
- Follow FCRA: notice, consent, and adverse-action procedures
- Conduct individualized assessments; document job-related business justification
Salary History Ban
NoPublic Act 84 (2018)
State law preempting local salary-history regulations:
- Localities cannot regulate salary inquiries
- Private employers may ask salary history
- Preempts municipal bans or restrictions
- Effective June 2018 statewide
Source: https://www.legislature.mi.gov/documents/2017-2018...
Executive Directive 2019-10
Governor's directive restricting state hiring inquiries:
- No salary inquiries before conditional offer
- State employers cannot contact prior employers
- No salary database searches permitted
- Voluntary disclosures may be considered
- Discovered salary history cannot be used
Source: https://www.michigan.gov/-/media/Project/Websites/...
Important Distinction
Michigan uniquely bars local governments from restricting employers' salary‑history inquiries (Public Act 84, 2018) while only state agencies are limited by Executive Directive 2019‑10. https://house.michigan.gov/hfa/PDF/Summaries/18h55... https://www.michigan.gov/-/media/Project/Websites/...
Salary History Best Practices for Michigan Employers
- Private employers may ask salary history; check antidiscrimination laws
- State agencies: don't request salary history before conditional offer
- Do not contact prior employers or search databases for pay
- Avoid using salary history to justify pay disparities
- Document job-based pay decisions and monitor internal pay equity
Consumer Credit Checks
NoMichigan permits employment credit checks; federal FCRA governs required standalone disclosure, written consent, pre‑adverse/adverse notices—employers/CRAs must comply. https://www.michigan.gov/financialfuture/toolkit/c... https://consumer.ftc.gov/articles/employer-backgro...
Key Requirements
Fair Credit Reporting Act (15 U.S.C. §1681 et seq.)
Federal law governing employment credit checks in Michigan:
- Written consent required before reports.
- Standalone disclosure mandatory, not combined.
- Pre-adverse and final adverse notices required.
- Consumers can dispute; CRA must investigate.
- Employers must provide CRA contact information.
Sources: CFPB FCRA summary — https://files.consumerfinance.gov/f/201504_cfpb_su... FTC employer background checks — https://consumer.ftc.gov/articles/employer-backgro...
Michigan State Position (no state-specific restriction)
Michigan’s official stance on employment credit checks:
- No state law prohibiting credit checks.
- Employers may use credit reports.
- FCRA governs compliance in Michigan.
- Criminal-record rules are separate protections.
- State contractors may face extra requirements.
Sources: Michigan Treasury credit toolkit — https://www.michigan.gov/financialfuture/toolkit/c... MDCR hiring criminal records — https://www.michigan.gov/-/media/Project/Websites/...
Detroit Fair Chance Ordinance
Local ordinance addressing criminal-history inquiries, not credit checks:
- Targets criminal-history inquiries only.
- Does not restrict employment credit checks.
- Requires individualized assessments for convictions.
- Applies to City of Detroit employers.
Sources: Detroit Fair Chance overview — https://detroitmi.gov/document/fair-chance-ordinan... Ordinance PDF — https://detroitmi.gov/sites/detroitmi.localhost/fi...
Credit Check Best Practices for Michigan Employers
- Follow federal FCRA requirements—Michigan imposes no state restriction.
- Obtain written permission before requesting credit reports.
- Provide a standalone written disclosure, separate from applications.
- Give pre-adverse notice with report; allow response before final action.
- Document business justification and maintain consistent credit check policies.
Marijuana Protection
Medicinal Marijuana
Michigan’s medical marijuana law does not require employers to accommodate use or impairment at work. Employers may enforce drug-free workplace policies; medical marijuana generally is not a valid explanation for a positive workplace drug test. https://www.michigan.gov/mdhhs/-/media/Project/Web...
Recreational Marijuana
Recreational marijuana is legal, but the MRTMA does not require workplace accommodation and allows adverse action for violating workplace drug policies or working under the influence. Private employers may generally test; Michigan limits state preemployment marijuana testing for non-test-designated roles. https://www.legislature.mi.gov/Laws/MCL?objectName... https://www.michigan.gov/mdcs/inside-mdcs/regulati...
Drug Testing Regulations
MICHIGAN: Civil Service Rule 2‑7/Regulation 2.07 (effective Oct 1, 2023) governs drug/alcohol testing of state‑classified and test‑designated positions; pre‑employment marijuana testing now limited to test‑designated roles. Private employers retain discretion unless federal rules (e.g., DOT, Drug‑Free Workplace) apply.
Permitted Testing Types
Pre-Employment
Allowed for public and private; marijuana limited for non‑test‑designated.
Random Testing
Allowed; state classified subject to 15% caps; private generally allowed.
Reasonable Suspicion
Allowed; for state employees requires specific, objective facts.
Post Accident
Allowed when evidence links employee to a serious work-related accident.
Workers' Compensation Discount
No state law ties drug-testing to workers' compensation premium discounts in Michigan; research found no statutory discount.
Confirm with insurers; Michigan law does not provide automatic workers' compensation premium reductions based on drug-testing.
Best Practices
- Follow Regulation 2.07 for state-classified employee testing
- Avoid preemployment marijuana testing for non–test‑designated positions
- Obey federal DOT and Drug‑Free Workplace Act mandates
- Use SAMHSA‑certified labs and Medical Review Officers
- Provide notice, confidentiality, and supervisor reasonable‑suspicion training
Clean Slate Laws
StatewideMichigan Clean Slate (P.A.193/2020; MCL 780.621–780.623) provides automatic set‑asides since Apr 11, 2023 and petition relief; sealed convictions are nonpublic and generally may not be reported to or considered by employers or CRAs.
E-Verify Requirements
Mandatory for Some Public ContractorsWho Must Use E-Verify
Private Employers — No statewide statute; pending HB 4061 / SB 444 (pending)
No statewide E-Verify mandate for all private employers; Form I-9 remains required for all hires. Pending HB 4061/SB 444 may expand public-contractor obligations. (Form I-9: https://www.michigan.gov/mdhhs/inside-mdhhs/mdhhsc... (Pending bills: https://zeus-milenia.legislature.mi.gov)
Federal Contractors — IRCA / federal E-Verify requirements
Yes. Federal contractors with E-Verify clauses must enroll and verify covered employees per federal requirements (enroll/verify timelines apply). (Form I-9 reference: https://www.michigan.gov/mdhhs/inside-mdhhs/mdhhsc...
Any other relevant groups — MDOT contract language; MDHHS APB 2023-013; Oakland & Macomb ordinances; Ingham County program
MDOT contractors, MDHHS contractors with FTI/FID access, Oakland and Macomb county vendors/contractors must use E-Verify; Ingham County participation is voluntary. (MDOT: (MDHHS AP: https://dhhs.michigan.gov/olmweb/ex/AP/Public/APS/... (Oakland: https://elections.oaklandcountymi.gov/?navid=1701) (Macomb/MDHHS county info: https://www.michigan.gov/mdhhs/inside-mdhhs/county...
Background Check Regulations
Employers in Michigan must follow federal screening laws (FCRA) and state rules that limit use of arrest/conviction information—Elliott-Larsen bars asking about misdemeanor arrests not resulting in conviction, and some jobs have additional state licensing/background restrictions.
FCRA Compliance Process
Disclosure & Authorization
Provide clear, standalone written disclosure that a background check will be conducted. Obtain separate written authorization from the applicant before ordering the report.
Obtain Background Report
Order the background check from a Consumer Reporting Agency (CRA). Ensure the CRA is FCRA-compliant and provides accurate, up-to-date information.
Pre-Adverse Action Notice
If considering denying employment based on the report, provide the applicant with:
- Copy of the background report
- Copy of "A Summary of Your Rights Under the FCRA"
- Reasonable time to respond (typically 5 business days)
Adverse Action Notice
If final decision is made to deny employment, provide written notice including:
- Name, address, and phone number of the CRA
- Statement that the CRA did not make the decision
- Notice of right to dispute report accuracy
- Notice of right to request additional free copy within 60 days