Lawmakers introduce legislation to protect Michigan workers and taxpayers
Members of the House Democratic Caucus stand together at the “Stop Payroll Fraud” press conference on Tuesday, April 15, 2025, at the Anderson House Office Building in Lansing.
LANSING, Mich., April 17, 2025 — State Rep. Regina Weiss (D-Oak Park) and Democratic colleagues hosted a press conference this week to introduce a package of bills, House Bills 4316-27, designed to crack down on payroll fraud, focusing on companies that cheat workers, the state and other businesses.
“As lawmakers, our job is to protect and empower the workers who keep this state running and the taxpayers who deserve a fair return on their hard-earned dollars. When shady companies cheat the system, it’s working people who end up paying the price. House Dems won’t stand by while the burden gets passed down to those who can least afford it. We’re taking action to hold bad actors accountable and ensure Michigan’s economy rewards those who play by the rules — not those who game the system,” Weiss said.
Currently, gaps in the system allow crooked companies to rob workers and taxpayers of hundreds of millions of dollars each year, and offenders often escape accountability and punishment.
“Whistleblowers are often the first line of defense against fraud, abuse and threats to public safety. They deserve more than just our thanks — they deserve real protections. My bill ensures that no one is left vulnerable for doing the right thing, and that Michigan remains a state where integrity is valued and defended,” said state Rep. Kimberly Edwards (D-Eastpointe).
The bills in this package would strengthen whistleblower protections to shield and incentivize employees who report wrongdoing, toughen penalties against payroll fraud and reimburse back-wages and benefits to cheated workers, making Michigan a leader in protecting workers.
“This package is about fairness, accountability and standing up for hardworking Michiganders. My bill in this package will ban non-compete agreements for most employees and require notice of a non-compete agreement to job applicants, giving hardworking Michiganders every opportunity to succeed and get ahead. With this legislation, we’re putting bad actors on notice and making it clear: Michigan stands with workers — and we won’t tolerate abuse, fraud or silence in the face of injustice,” said state Rep. Denise Mentzer (D-Mt. Clemens).
Payroll fraud costs Michigan taxpayers $107 million a year in tax revenue when businesses misclassify workers as independent contractors or pay them off the books as a way to avoid paying their fair share of taxes, a Michigan State University study found.
“It’s no secret that inflation has been high for the last few years and is heading even higher, especially with an uncertain, often chaotic federal tariff regime threatening to raise prices on food, automotive parts and anything else under the sun that the government decides on a given Tuesday to slap a tariff on. In times like these, every worker needs to make sure their dollar goes as far as it can, because wages fail to keep up with increased inflation and marketplace prices. And it’s in those moments that unscrupulous employers often look to the labor force as the place to recapture money for themselves when they can’t afford parts or when supply chains are disrupted. That’s why it’s more important than ever to make sure workers are paid fairly, that their wages are protected and that they aren’t the first place an employer goes to try to recapture some money for themselves. With continued high inflation, high prices and the likelihood of stagnation on the horizon, I hope we will see these bills pass and protect the Michiganders who stand to get hurt the most by rising costs,” said state Rep. Joey Andrews (D-St. Joseph).
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