The proposed bill, known as the "Fair Paycheck Workplace Certificate Act," aims to establish a certification process for employers in Michigan to demonstrate their commitment to equitable compensation practices. To obtain a fair paycheck workplace certificate, employers must submit an application to the director of the Department of Labor and Economic Opportunity, including details such as the number of employees, their protected attributes, and payroll records. The director will issue a certificate if the employer meets the criteria of having less than a 5% difference in average gross compensation among employees with different protected attributes. The initial certificate will expire after six months, while subsequent certificates will last for one year, and employers can renew their certificates by reapplying.

Additionally, the bill prohibits employers from falsely claiming to possess a fair paycheck workplace certificate and imposes civil fines for violations. The director is tasked with maintaining a public database of certified employers, which will include their names, addresses, and certificate status. The bill also mandates the promulgation of rules to implement its provisions, ensuring that the application process and associated fees are clearly defined. Overall, this legislation seeks to promote fair compensation practices and enhance transparency in the workplace.