As the conversation around pay equity continues to evolve across the U.S., more attention is being placed on pay transparency. Pay transparency is the practice of openly sharing salary information with employees, job candidates and the public. It aims to promote fairness, reduce gender and racial pay gaps and empower employees to negotiate better compensation.
States like California, Colorado and New York have enacted laws requiring pay transparency, but what about Michigan? While Michigan does not have a statewide pay transparency law, city-specific ordinances and industry regulations help promote pay equity in certain sectors.
City ordinances: Detroit and Ann Arbor leading the charge
Although the Great Lake State lacks a statewide law on pay transparency, some cities have taken the initiative to establish their own pay transparency rules. For example, both Detroit and Ann Arbor have local ordinances that include provisions designed to enhance wage transparency and fairness.
In Detroit, one of the largest cities in the state, efforts have been made to push pay equity through hiring practices in the public sector and in businesses that contract with the city. Detroit’s policies help ensure that wage scales are more visible to prospective employees and help prevent discriminatory pay practices.
Similarly, Ann Arbor has adopted pay equity measures that extend to city government jobs and contractors. While these local ordinances do not affect the entire private sector, they exemplify how individual cities can enact policies that contribute to greater transparency and fairness in wages.
Industry-specific requirements: Healthcare and public sector
In addition to city-specific ordinances, some industries in the Great Lake State are subject to pay transparency regulations, particularly in healthcare and the public sector. For example, hospitals and healthcare providers are required to post pay scales for certain roles, especially in unionized environments. Similarly, public sector employees—including state and city workers—often have salary information made publicly available, either through government portals or collective bargaining agreements.
These industry-specific requirements help promote wage transparency for workers in healthcare and public roles, though they do not cover all employees across the state. The public sector, in particular, has long embraced transparency due to public accountability concerns, providing a framework that some advocates believe should extend to the private sector.
While the Great Lake State does not currently have a statewide pay transparency law, the movement toward fair wages is gaining momentum, driven by city ordinances in places like Detroit and Ann Arbor and industry-specific healthcare and public sector regulations. For now, employees in all locations can benefit from staying informed and seeking legal guidance for clarifications concerning the disclosure of salary ranges.