So far in 2026, workplace change shows no signs of slowing. Michigan employers are facing shifting compliance requirements, evolving workforce expectations, and increased scrutiny around the use of artificial intelligence in employment decisions.
Solidifying a proactive HR strategy can reduce risk, support compliance, and help leaders make more confident decisions. Reviewing policies and setting clear expectations can put organizations in a stronger position as new rules and trends take shape.
Below are key human resources considerations to help Michigan businesses prepare for the year ahead.
Monitor EEOC Activity and Workforce Trends
Several HR and employment law trends are already emerging in early 2026, signaling areas employers should watch closely:
- Discrimination charges are rising. EEOC data shows filings have increased in recent years, pointing to higher enforcement activity and litigation risk.
- Disability, race, and sex claims remain the most common. Disability-related claims continue to grow, reinforcing the need for strong accommodation and interactive process practices.
- Union-related rules are evolving. New state laws and federal agency decisions are challenging long-standing practices around mandatory “captive audience” meetings during organizing efforts.
Stay Ahead of Wage Updates
This year, Michigan’s minimum wage rate increased to $13.73 per hour, and will increase further to $15.00 on January 1, 2027.
As part of the February 21, 2025, changes to the IWOWA, the state also implemented a plan for raising the minimum hourly wage for tipped employees. The minimum hourly wage for tipped employees will gradually increase from 38% of the full minimum wage to 50% of the full minimum wage by 2031.
Prepare for Artificial Intelligence Regulation in HR
Artificial intelligence is rapidly transitioning from an experimental technology to an essential operational tool for businesses in Michigan, especially in innovation hubs such as Ann Arbor.
That said, lawmakers are paying closer attention to how employers use artificial intelligence in hiring, promotion, and other employment decisions. Several states, including Illinois, have enacted or proposed laws regulating employment-related AI tools. Is Michigan next?
These laws often require transparency, bias testing, and recordkeeping to address concerns about “algorithmic discrimination.” Michigan employers may need to be prepared to explain how AI tools influence decisions and demonstrate that their use does not create unintended bias against protected groups.
Looking Ahead
Employers that review policies, train managers, and track legal developments early in the year are better positioned to adapt as changes emerge. A proactive HR approach supports consistency, reduces risk, and helps organizations respond more effectively to new requirements.
The year will reward employers who stay informed, document decisions carefully, and treat compliance as an ongoing process rather than a one-time task.
This article does not constitute legal advice and does not address state or local law.
Article courtesy of SBAM-approved partner, AxiosHR , an Engage PEO.
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