At-a-Glance Compliance Overview

State Mini-FCRA Laws

Michigan does not maintain a consumer reporting statute comparable to the “mini-FCRA” laws adopted in states such as California, Massachusetts, or Colorado.

Employment background checks obtained from consumer reporting agencies are governed primarily by the Fair Credit Reporting Act (15 U.S.C. §1681 et seq.).

Employers using third-party background screening providers must comply with federal requirements, including:

• providing a clear written disclosure before obtaining a consumer report
• obtaining written authorization from the applicant or employee
• providing pre-adverse action and adverse action notices when information in a consumer report influences an employment decision.

Criminal Record Reporting Rules

Michigan does not impose state-specific reporting limits on criminal convictions in employment background checks.

Convictions

Criminal convictions may generally be reported without time limitation under FCRA §605(a)(5).

Non-Convictions

Under the Fair Credit Reporting Act, consumer reporting agencies generally may not report arrests or other adverse non-conviction information that is more than seven years old, subject to federal salary threshold exceptions.

Criminal History Use Restrictions

Michigan law limits the use of certain criminal history information in employment decisions.

Arrest Records

Under Michigan law, employers may not request, make, or maintain a record of an arrest that did not result in a conviction, except as otherwise permitted by law.

Relevant statute:

Mich. Comp. Laws §37.2205a

This restriction applies broadly and prohibits reliance on non-conviction arrest records in employment decisions.

Record Sealing / Expungement

Michigan provides mechanisms for expungement and record sealing under its “Clean Slate” framework.

Relevant statutes include:

Mich. Comp. Laws §780.621 et seq. – Expungement
Mich. Comp. Laws §780.621g – Automatic set-aside (Clean Slate)

Eligible individuals may:

• petition for expungement of certain misdemeanor and felony convictions
• benefit from automatic set-aside of eligible records under the Clean Slate law

Expunged or set-aside records are generally not available for public background checks.

Fair Chance / Ban-the-Box Law

Michigan has enacted a ban-the-box requirement applicable to public employers only.

Private employers may:

• inquire about criminal history at any stage of the hiring process
• include criminal history questions on initial job applications

However, local ordinances may impose additional requirements.

Credit Check Rules

Michigan does not have a statute specifically restricting employer use of credit reports for employment purposes.

Employers may obtain and use credit reports in compliance with the Fair Credit Reporting Act (15 U.S.C. §1681 et seq.).

Employers should ensure that any use of credit information is:

• job-related
• consistent with applicable anti-discrimination laws

Cannabis Use and Drug Testing Rules

Michigan permits both medical and recreational marijuana use, but does not require employers to accommodate marijuana use in the workplace.

Employers may:

• maintain drug-free workplace policies
• prohibit marijuana use during work hours
• discipline employees for workplace impairment or positive drug tests

Local Fair Chance or Screening Ordinances

Grand Rapids – Human Rights Ordinance (Ordinance No. 2019-43)

Grand Rapids has enacted a Human Rights Ordinance that includes provisions regulating the use of criminal history in employment decisions. These provisions are framed as anti-discrimination requirements and apply to private employers within the city.

Key Requirements

Employers should:

• not include criminal history questions on initial job applications
• delay criminal history inquiry until after the applicant is otherwise qualified or selected for further consideration
• evaluate criminal history using job-related criteria, including:

• nature and gravity of the offense

• time elapsed

• relationship to the position

Enforcement Considerations

Although Michigan law generally preempts local regulation of hiring practices, Grand Rapids’ ordinance is structured as an anti-discrimination law. As a result:

• its enforceability against private employers remains legally complex
• it remains in effect and active

Pay Equity and Salary History Rules

Michigan does not maintain a statewide salary history ban or pay transparency law affecting private employers.

Employers must comply with federal anti-discrimination laws governing compensation.

Key Statutes

• Arrest Record Restriction – Mich. Comp. Laws §37.2205a
• Expungement – Mich. Comp. Laws §780.621 et seq.
• Clean Slate – Mich. Comp. Laws §780.621g

Employer Compliance Checklist

Employers conducting background checks in Michigan should implement several compliance practices.

• Follow federal Fair Credit Reporting Act disclosure, authorization, and adverse action requirements when ordering background checks.

• Do not request or rely on arrest records that did not result in a conviction.

• Ensure expunged or set-aside records are not considered in employment decisions.

• Apply criminal history screening policies consistently to reduce discrimination risks.

• Evaluate use of credit information for job-relatedness and compliance with employment laws.

• For Grand Rapids hiring, remove criminal history questions from initial applications and delay inquiry until later in the hiring process.

• Evaluate criminal history using job-related criteria for positions in Grand Rapids.

• Maintain clear workplace drug testing policies addressing marijuana use and workplace impairment.