Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | LinkedIn
Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | LinkedIn
The increasing use of AI tools for notetaking and meeting transcription in workplaces raises legal concerns about compliance with recording laws. Employers must be aware of both federal and state regulations to ensure lawful practices.
Federal law requires only one-party consent for recording conversations, meaning one participant can record without notifying others. However, some states mandate two-party or all-party consent, requiring notification and agreement from all involved before recording begins. Consent may be passive, such as an announcement at the start of a meeting, or active, like signing a consent form.
Michigan is a one-party consent state but prohibits third parties from recording without consent due to its eavesdropping clause. Companies cannot record employees' meetings if attendees are unaware or have not agreed to it. If a party is located in a two-party consent state during the call, consent from all participants is necessary.
Employers are advised to include clauses in employee handbooks requiring obtaining consent before recordings. This helps avoid illegal recordings that could be inadmissible in court. Violating Michigan's recording laws can result in fines up to $2,000 and two years imprisonment; federal violations carry penalties up to $2,500 and five years imprisonment.
When creating a recording policy framework, employers should consider ADA accommodations involving recordings and inform employees they may be recorded without disclosing accommodation reasons. Participants who agree to being recorded have access rights to the recordings and must give permission before sharing them with non-participants.
Recording meetings for training purposes or keeping absent members informed is generally acceptable. However, sensitive information should not be recorded unless all parties agree.
Ganesh Y., Koelzer J.D., LegalClarity (2025), Recording Law (n.d.), Wilson J. (2024) provide further insights into these legal frameworks.
Lauren Cromie reports this information courtesy of SBAM-approved partner ASE.
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