SENATE BILL NO. 662

September 29, 2021, Introduced by Senators HERTEL, ALEXANDER, WOJNO, HOLLIER, IRWIN, MOSS, CHANG, BRINKS and MCMORROW and referred to the Committee on Economic and Small Business Development.

A bill to amend 1976 PA 453, entitled

"Elliott-Larsen civil rights act,"

by amending section 202 (MCL 37.2202), as amended by 2009 PA 190.

the people of the state of michigan enact:

Sec. 202. (1) An employer shall not do any of the following:

(a) Fail or refuse to hire or recruit, discharge, or otherwise discriminate against an individual with respect to employment, compensation, or a term, condition, or privilege of employment, because of religion, race, color, national origin, age, sex, height, weight, or marital status.

(b) Limit, segregate, or classify an employee or applicant for employment in a way that deprives or tends to deprive the employee or applicant of an employment opportunity, or otherwise adversely affects the status of an the employee or applicant, because of religion, race, color, national origin, age, sex, height, weight, or marital status.

(c) Segregate, classify, or otherwise discriminate against a person an individual on the basis of sex with respect to a term, condition, or privilege of employment, including, but not limited to, a benefit plan or system.

(d) Treat an individual affected by pregnancy, childbirth, or a related medical condition differently for any employment-related purpose from another individual who is not so affected but similar in ability or inability to work, without regard to the source of any condition affecting the other individual's ability or inability to work. For purposes of this subdivision, a medical condition related to pregnancy or childbirth does not include nontherapeutic abortion not intended to save the life of the mother.

(e) Pay any of its employees who are members of a protected class at a rate of compensation, including benefits, that is less than the rate paid by the employer to employees who are not members of the protected class for substantially similar work, when viewed as a composite of skill, effort, and responsibility. For the purpose of determining an employer's compliance with this subdivision, comparisons of wage rates must be based on wage rates in all of the employer's operations or facilities. An employer that is paying a rate of compensation in violation of this subdivision shall not reduce the rate of compensation of any employee in order to comply with this subdivision. An employer may pay a different rate of compensation only if the employer demonstrates that the differential is made pursuant to a seniority or merit system, or if the employer demonstrates all of the following:

(i) The differential is based on 1 or more legitimate, bona fide factors other than the characteristics of members of the protected class, such as training, education or experience, or the quantity or quality of production.

(ii) The factor or factors are not based on, and do not perpetuate, a differential in compensation based on any characteristic of members of a protected class.

(iii) Each of the factors is applied reasonably.

(iv) One or more of the factors account for the entire wage differential.

(v) Each of the factors is job-related with respect to the position in question and based on a legitimate business necessity. A factor based on business necessity does not apply if it is demonstrated that there are alternative business practices that would serve the same business purpose without producing the wage differential.

(2) This section does not prohibit the establishment or implementation of a bona fide retirement policy or system that is not a subterfuge to evade the purposes of this section.

(3) This section does not apply to the employment of an individual by his or her parent, spouse, or child.

(4) This section's prohibition of discrimination against an individual because of the individual's sex includes a prohibition of discrimination against an individual because of the individual's sexual orientation or gender identity.

(5) This section's prohibition of discrimination against an individual because of the individual's marital status includes a prohibition of discrimination against an individual because of the individual's civil union status.

(6) As used in this section, "member of a protected class" means an employee who has 1 or more characteristics, including religion, race, color, national origin, age, sex, sexual orientation, gender identity, height, weight, marital status, or civil union status, reliance on which subsection (1)(a) prohibits as an employer's basis for discriminating against an individual with respect to employment, compensation, or a term, condition, or privilege of employment.