Michigan House Bill HB5508

Michigan 2025-2026 Regular Session

• Introduced: 2/5/26
• Refer: 2/5/26

Caption

Civil rights: sex discrimination and harassment; confidentiality provisions in settlement agreements; prohibit. Amends 1976 PA 453 (MCL 37.2101 - 37.2804) by adding sec. 706.

Summary

House Bill 5508 would amend Michigan’s Elliott-Larsen Civil Rights Act to limit confidentiality provisions in settlement agreements involving claims of sex-based assault, discrimination, harassment, or retaliation against an employer. In general, the bill prohibits settlement terms that prevent or restrict disclosure of factual information related to those claims, and it also bars courts from entering orders that would impose similar restrictions in covered civil actions. The bill creates two main exceptions. First, a settlement may include a provision protecting the claimant’s identity and information that could reveal the claimant’s identity, if the claimant requests that protection. Second, a settlement may prohibit disclosure of the amount paid to resolve the claim. Any settlement term that violates the bill’s disclosure rule would be void as a matter of law and contrary to public policy.

Impact

If enacted, the bill would add a new section 706 to the Elliott-Larsen Civil Rights Act and change how certain employment-related sex discrimination and harassment claims may be settled in Michigan. It would restrict the use of nondisclosure provisions in settlements and limit court-approved confidentiality orders in covered cases, while preserving claimant-requested anonymity protections and settlement-amount confidentiality. The practical effect would be to increase transparency about the facts underlying these claims and reduce the ability of employers to use broad secrecy clauses in resolving them.

Sentiment

The available record does not include committee testimony, recorded votes, or formal action history, so there is no direct evidence of support or opposition from hearings or floor debate. Based on the bill’s subject matter and structure, it appears aimed at transparency and accountability in workplace sex-discrimination and harassment settlements, which typically aligns with reform efforts to reduce secrecy around misconduct claims. At the same time, the bill preserves some confidentiality protections, suggesting an attempt to balance transparency with claimant privacy.

Contention

The main point of contention is likely to be the bill’s restriction on confidentiality in settlement agreements. Supporters would likely favor the disclosure of factual information to discourage repeat misconduct and hidden patterns of abuse, while opponents may argue that limiting nondisclosure terms could make settlements harder to reach or reduce privacy for employers and claimants. The bill addresses some privacy concerns by allowing anonymity protections at the claimant’s request and permitting secrecy over the settlement amount, but it does not allow broad confidentiality over the underlying facts of the claim.