LANSING, Mich. (March 6, 2026) — Continuing her fight for Michigan workers, yesterday, Sen. Sarah Anthony (D-Lansing) testified on her legislation that prohibits employers from seeking information about an applicant’s past pay, fringe benefits, credit report, or credit history. Senate Bill 145, discussed in the Senate Labor Committee with input from local advocates, would also ban employers from preventing employees from discussing wages in the workplace.
“People should be hired and compensated for their ability to do their job, plain and simple — and not be shortchanged by employers making decisions based on the irrelevant information contained in an applicant’s credit history or previous pay stubs,” said Sen. Anthony. “With Equal Pay Day around the corner, I’m both excited and proud to get this legislation moving in the Michigan Legislature, which would help tackle the longstanding pay disparities that continue to rob women — especially women of color — from receiving the wages they have earned and deserve. By updating our state’s employment policies to reflect current best practices and aligning with other states that have made progress on tackling pay inequities, we can provide a real chance for women to get ahead. It’s time to get this done.”
Credit checks disproportionately harm low-income workers, women, students, and people of color, creating a cycle of disadvantage when employers use that information in their hiring decisions. By adding Michigan to a growing list of states that already restrict the use of credit checks in employment-related decisions, Sen. Anthony’s bill would break that cycle by ensuring applicants are judged on merit, not their financial background.
“As President and CEO of the Michigan Black Business Alliance, representing thousands of small business owners across our state, I can say clearly that wage transparency and fair hiring practices are not barriers to small business success — they are drivers of it,” said Charity Dean, President and CEO of Black Business Alliance, who also spoke on the legislation in committee yesterday. “Small businesses thrive when they can compete for the best talent, and that means evaluating people based on their skills and potential, not their credit history or what someone else chose to pay them. When we remove those barriers, we create stronger businesses, more equitable workplaces, and a more competitive economy for everyone.”
Introduced in previous sessions, this legislation was crafted from the best-practice recommendations of labor economists and civil rights groups and would align Michigan with national pay equity movements, such as those in California, New York, Massachusetts, and Colorado — states that already ban salary history inquiries, another practice that contributes to the gender wage gap.
“The ‘motherhood penalty’ is a phenomenon where working mothers experience lower wages, reduced hiring rates, and fewer promotion opportunities compared to childless women and men,” said Aisha Wells, Co-Deputy Director of Mothering Justice, who also testified in support of the bill yesterday. “According to the latest U.S. Census Bureau data, 73.2% of mothers with children younger than 18 are in the workforce. We all know how one unexpected emergency as a mama can change your financial stability, and being a mama shouldn’t hinder your ability to be employed. Moving away from these disclosures moves Michigan closer to being a place where mamas thrive.”
Despite the passage of the Equal Pay Act over 60 years ago, a significant gender wage gap still exists in the United States. In 2024, women working full-time, year-round earned 81 cents for every dollar earned by men, while all women — including part-time and seasonal workers — earned 76 cents per dollar. For full-time workers, that translates into about $542,800 in lost wages over a 40-year career. And for women of color, the losses are even more staggering, with Black, Hispanic/Latina, Native Hawaiian, Pacific Islander, and Native American women each losing over $1 million over a lifetime. By requiring employers to adopt fairer, more transparent hiring and compensation practices, Sen. Anthony’s legislation would help close these pay inequities, ensuring women and all workers can access the earnings they are entitled to.