3 Michigan Laws That Are Helping Small Business Owners


In the state of Michigan, there are various laws that affect small business owners, in a good way.


Workforce Opportunity Minimum Wage Act

In January 2016, Michigan saw an increase in its minimum wage, from $8.15 per hour to $8.50 per hour. It is expected to increase again in 2017 to $8.90, and in 2018 to $9.25. Although it may seem this is a benefit only to employees, small business owners can also see its positive effects. According to a United States Department Of Labor July 2015 survey, small business owners say an increase “would immediately put more money in the pocket of low-wage workers, who will then spend the money on things like housing, food, and gas. This boost in demand for goods and services will help stimulate the economy and help create opportunities”. The increase in minimum wage may be viewed as a hit to the initial bottom line, but with the potential stimulation to the economy, it can be a positive return on investment.


Freedom to Work Act (FTW)

The Freedom to Work Act, which took effect in 2013, prohibits union-security agreements. It prevents employees from paying union dues and service fees as a requirement to obtain or continue employment. This law has been met with a mixed reaction, but has deemed to be effective in attracting new business to the state. For small business owners, this law is a huge incentive in how they hire and maintain employees.


Michigan Antitrust Reform Act

The Michigan Antitrust Reform Act is key in how a small businesses are able to operate. In effect for more than 30 years, the law prohibits monopolies and attempts to monopolize trade and commerce, prohibiting contracts and conspiracies to prevent trade by others. The law allows you, the small business owner, the ability to sell your product, provide your service without the blocking of a larger monopoly of businesses preventing you to do so, and to do so effectively. The law also provides a section in which an employer can construct an agreement between themselves and their employee, preventing the employee from engaging in employment with a competitor, or competitive line of business, during a reasonable allocated amount of time after termination.

Additional information regarding laws affecting small businesses can be found at www.michigan.gov and www.legislature.mi.gov.



This article was written by T. Marie Adams for CBS Small Business Pulse.


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