The Michigan Legislature has moved forward with several key bills affecting small businesses this spring, according to a March 31 update from the National Federation of Independent Business. Lawmakers have taken a cautious approach to legislation this year, but some measures with significant impact for employers are advancing through the chambers.
These legislative actions are important for small business owners as they address issues related to legal liability, litigation funding transparency, state-run retirement programs, and employment practices. The outcomes could affect business costs and regulatory requirements across Michigan.
One major issue is premises liability. In 2023, the Michigan Supreme Court removed the “open and obvious” doctrine as a threshold in such cases. Previously, property owners were not liable if an average person could reasonably detect and avoid hazards like potholes or wet floors with warning signs. Without this standard, courts must now decide whether visible dangers still pose an unreasonable risk of harm—leading to more complex lawsuits and higher costs for property owners. House Bill 4582 aims to restore the “open and obvious” defense; it passed the House with bipartisan support on March 11 after testimony from NFIB representatives. While its future in the Senate is uncertain, NFIB said it will continue advocating for its passage.
Another area under review is third party litigation funding (TPLF), where outside investors finance lawsuits in exchange for part of any settlement or judgment. Estimates suggest TPLF plays a role in about 30% of U.S. infringement cases nationwide with investments totaling $15.2 billion annually. House Bill 5281 would require funder disclosure and registration in Michigan while prohibiting funders from influencing case outcomes or allowing foreign adversaries to finance lawsuits; it also limits potential earnings by funders from awards. The bill received committee testimony support from NFIB earlier in March and is expected to pass the House soon.
The legislature is also considering new employer obligations under Senate Bills 807 and 808 that would create MI Secure Retirement—a state-run program automatically enrolling employees without access to private retirement plans unless they opt out. Employers would be required to manage payroll deductions for contributions remitted directly to the state government—a move opposed by NFIB due to increased regulatory burden but approved by the Senate Labor Committee on March 19.
Additionally, Senate Bill 145 seeks to ban employers from asking job applicants about previous wages or credit history during hiring processes—a restriction opposed by NFIB but advanced out of committee on March 12.
NFIB said it remains focused on representing small business interests as these proposals progress through Michigan’s divided legislature.
