Michigan Employment Background Screening Laws in 2025: A Comprehensive Guide
Michigan’s employment background screening laws in 2025 balance fairness and workplace safety. Employers must navigate federal and state regulations.
These include the Fair Credit Reporting Act (FCRA) and the Michigan’s Clean Slate Act. Additionally, The Elliott‑Larsen Civil Rights Act prohibits discrimination based on criminal history unless job‑related. State public employers follow Executive Directive 2018‑4 on ban‑the‑box.
This guide explores Michigan’s background screening laws for 2025. It includes key aspects like criminal history, credit checks, and AI usage.
Criminal History and Lookback Periods
How Far Back Can Employers Look?
The FCRA generally limits reporting of adverse information to seven years. This applies to civil judgments, liens, and bankruptcies. However, in Michigan — this seven-year limit does not apply to criminal convictions. Felony and misdemeanor convictions can generally be reported indefinitely. This changes if records are expunged.
For positions with salaries of $75,000 or more, the seven-year FCRA limit does not apply. Older financial records may be disclosed in these cases.
Michigan’s Clean Slate Law
Michigan’s Clean Slate Law impacts criminal history reporting. Certain convictions can be automatically expunged. This happens after a set number of years. Once expunged, these records cannot be reported. This applies even for high-salary positions.
As of April 11, 2023, some felonies and misdemeanors are automatically expunged. This occurs after a certain time. For instance, qualifying misdemeanors can be erased after seven years. Qualifying felonies can be erased after 10 years.
Michigan law prohibits considering arrest records not leading to conviction. This restriction applies unless the job involves law enforcement.
Michigan State Police: Criminal History Records
Ban-the-Box Laws in Michigan
Michigan’s ban-the-box laws promote fair hiring for ex-offenders. Public sector employers follow Executive Directive 2018-4. They cannot inquire about criminal history until after an interview or conditional offer. Several municipalities enforce stricter rules. Here’s a list of local ban-the-box laws:
- Ann Arbor: Delays criminal history inquiries until after a conditional offer.
- Detroit: Applies to city employers and vendors with contracts over $25,000 + employers with 15+ employees
- East Lansing: Prohibits criminal history questions until after an interview.
- Genesee County: Delays inquiries for county positions until a conditional offer.
- Grand Rapids: Restricts criminal history questions for city jobs until after an interview.
- Kalamazoo: Applies to municipal employers, delaying criminal inquiries.
- Muskegon County: Prohibits early criminal history questions for county roles.
- Oakland County: Delays inquiries until after a conditional offer.
- Ypsilanti: Restricts criminal history questions until after an interview.)
Private employers face no statewide ban-the-box law. However, local ordinances may apply. Always check municipal regulations for compliance.
Restrictions on Employment Credit Reports
Michigan currently does not have a specific state law restricting credit report use. However, the FCRA still applies. Employers need a legitimate business reason, like financial or managerial roles. The FCRA limits reporting of certain adverse credit information to seven years. This includes civil lawsuits, collections, and bankruptcies.
The seven-year restriction does not apply if the position pays $75,000 or more. Some proposed legislation in Michigan aims to restrict credit report use. For instance, House Bill 4329 (2025-2026) proposes limiting medical debt reporting. This bill is not yet law.
AI in Background Checks
Artificial intelligence usage is growing. However, Michigan has no specific AI law. Still, federal guidelines apply. EEOC focuses on algorithmic bias.
Employers using AI tools must:
- Validate for disparate impact
- Ensure transparency in decisions
- Provide adverse action notices
- Maintain human oversight processes
Additionally, FCRA requirements remain applicable. Consequently, AI compliance requires caution.
Key 2025 Updates
- Michigan per se, does not have any limitations for allowing checking criminal records. Safe harbor would be going by FCRA guidelines.
- Clean Slate limits older records.
- Ban‑the‑box applies only to public sector. Municipal private‑sector rules are prohibited.
- Credit checks are allowed with a business case, notification, and consent.
- AI tools help but require care to avoid bias.
- Title VII mandates individualized assessments and prohibits blanket exclusions.
Employers should follow official state guidance from LARA and MSP. They should document decisions, comply with FCRA, and verify job‑relevance.
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Case Law on Hiring and Firing Lawsuits
Legal disputes over background checks highlight compliance needs. These cases show the importance of following FCRA and state laws. Proper procedures prevent costly litigation. Below are key Michigan cases:
Doe v. XXXX Constr., LLC (2016)
The Sixth Circuit ruled employers can limit FCRA liability. They must follow proper disclosure and adverse action processes. Non-compliance led to a lawsuit over improper background check use.
People v. XXXX (2021)
A CFO’s misuse of company funds went undetected due to lax screening. This Oakland County case stressed thorough background checks for financial roles.
EEOC v. Ford Motor Co. (2022)
Ford settled background check lawsuit. Allegations involved racial discrimination. Specifically, criminal screening disproportionately impacted minorities. The company paid $3.5 million.
Smith v. XXXX Logistics (2023)
Court addressed expungement violations. Employer considered set-aside conviction. This violated Clean Slate provisions. The plaintiff received damages.
Johnson v. State of Michigan (2024)
Clarified ban-the-box requirements. State agencies must follow Executive Order 2018-10. Non-compliance creates liability risk. The ruling favored applicants.
Frequently Asked Questions: Michigan Employment Background Checks
1. What are the primary laws governing employment background checks in Michigan?
Employers in Michigan must comply with both federal and state laws. The primary laws are:
- Federal Fair Credit Reporting Act (FCRA): This is the main federal law regulating background checks conducted by third-party consumer reporting agencies (CRAs). It requires employers to get a candidate’s written consent before obtaining a report, provide pre-adverse and adverse action notices if the report influences a negative hiring decision, and ensure the information is accurate. The FCRA is administered by the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB).
- Elliott-Larsen Civil Rights Act (ELCRA), MCL 37.2205a: This is a key Michigan state law that places specific restrictions on using criminal history in employment decisions. It prohibits employers from inquiring about or considering misdemeanor arrests that did not result in a conviction when making hiring or personnel decisions. This statute is administered by the Michigan Department of Civil Rights (MDCR).
2. How far back can an employer look into an applicant’s criminal history in Michigan?
Michigan law does not set a specific lookback time limit for reporting criminal convictions. Under the federal FCRA, convictions can be reported indefinitely. However, Michigan employers must follow these critical state-level rules:
- Statute/Regulation: Elliott-Larsen Civil Rights Act (ELCRA), MCL 37.2205a.
- Description: This law states that for employment purposes, an employer “shall not request, make, or maintain a record of information regarding a misdemeanor arrest, detention, or disposition where a conviction did not result.” This effectively creates an indefinite ban on using non-conviction misdemeanor arrest records in hiring. While the federal FCRA has a 7-year lookback period for non-conviction records, Michigan’s law is more restrictive in this specific area.
- Administering Agency: Michigan Department of Civil Rights (MDCR).
Therefore, while you can review an applicant’s entire conviction history, you cannot consider misdemeanor arrests that did not lead to a conviction, regardless of how long ago they occurred.
3. Does Michigan have a statewide “Ban the Box” law for private employers?
No, Michigan does not currently have a statewide “Ban the Box” law that applies to private employers. This means private companies are generally permitted to ask about criminal convictions on an initial job application.
However, it is considered a best practice to delay this inquiry until after an initial interview to avoid potential discrimination claims. Furthermore, some municipalities in Michigan have enacted their own local “Ban the Box” ordinances that may apply to your business. These include:
- City of Detroit
- City of Ann Arbor
- City of Kalamazoo
- Genesee County
Employers in these jurisdictions should consult the specific local ordinances. Additionally, the State of Michigan has a “Ban the Box” policy (Executive Directive 2019-10) that applies to hiring for state government positions, administered by the State of Michigan Civil Service Commission.
4. What are the rules for accessing and using an applicant’s driving record?
Accessing and using driving records for employment purposes is governed by both the federal FCRA (if obtained through a third-party vendor) and Michigan state law.
- Statute/Regulation: Michigan Vehicle Code, MCL 257.208c.
- Description: This statute outlines who can access driving records and for what permissible purposes. For employment, an employer can obtain a copy of an applicant’s or employee’s driving record directly from the Secretary of State, but only with the individual’s written consent. The record will contain information on traffic violations, convictions, and accidents. When using this information, employers must ensure it is job-related (e.g., for a driving position) and applied consistently to all candidates to avoid discrimination.
- Administering Agency: Michigan Department of State.
5. Are there specific state laws in Michigan equivalent to the federal FCRA?
Michigan does not have a single, comprehensive state law that mirrors the federal FCRA for all types of background checks. However, certain state laws regulate specific components of personal information and records.
- Statute/Regulation: Michigan’s Identity Theft Protection Act (MCL 445.61 et seq.).
- Description: While not a “mini-FCRA,” this act is crucial for employers. It establishes requirements for businesses that obtain and handle sensitive “personal identifying information,” which is often collected during a background check (e.g., Social Security numbers, driver’s license numbers). The law requires employers to have a privacy policy, implement security measures to protect this data, and provide specific notifications in the event of a data breach.
- Administering Agency: The law grants enforcement authority to the Michigan Attorney General.
Therefore, while you must follow the federal FCRA for the background check process itself, you must also adhere to Michigan’s Identity Theft Protection Act for the secure handling of the data you collect.
Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult with qualified legal counsel regarding specific compliance questions.