The Michigan Legislature has taken a deliberate approach to legislation this year, so there are fewer bills being considered. However, the legislature has taken action on some significant legislation important to small businesses, outlined below. With a split government, often times bills will only make it through one chamber of the legislature, but NFIB continues to advocate for pro-small business policies in order to keep these issues front and center for legislators.

Premises Liability aka “Open and Obvious”

In 2023, the Michigan Supreme Court, in a clear case of judicial activism, effectively eliminated the “open and obvious” doctrine as a threshold issue in premises liability cases.  The “open and obvious” doctrine meant that if an average person of ordinary intelligence could reasonably be expected to discover and avoid a dangerous condition — the property owner was typically not liable for injuries stemming from that condition. Examples of this include a large pothole in a parking lot, a clearly visible wet floor with warning signs, snow and ice, or a cracked sidewalk.

Michigan is now one of only a handful of states that has completely eliminated “open and obvious” as a bar to duty in premises liability. For decades, this rule served as a clear, objective standard that allowed courts to dismiss meritless claims early in litigation. Without it, judges and juries must now engage in complex factual inquiries about whether an “open and obvious” hazard nonetheless posed an “unreasonable risk of harm.” This subjective standard increases litigation costs and clogs judicial resources with cases that previously would have been resolved swiftly.

House Bill 4582, which would reinstate the “open and obvious” standard for premises liability, passed the House with bipartisan support on March 11, 2026. NFIB testified in favor of the bill and was instrumental in shepherding this legislation through the House. While it is unlikely the Senate will take action, NFIB will continue to push for this critical cost saving legislation.

Third Party Funding Litigation Transparency

Third Party Litigation Funding (TPLF) is a practice where an outside investor (third party) finances a plaintiff or law firm’s legal costs in exchange for a share of any settlement or judgment. It is estimated that TPLF is used in 30% of America’s infringement cases, with nationwide investments totaling $15.2 billion.

In Michigan and many states across the nation, TPLF operates with virtually no oversight.  House Bill 5281 requires funder disclosure and registration, prohibits funder influence on case outcomes so justice remains the guiding compass, bans foreign adversaries from funding lawsuits, and caps funder earnings from awards.

NFIB supported committee testimony for TPLF transparency in early March and is expected to pass the House in the coming months.

MI Secure Retirement Mandate

The MI Secure Retirement program would create a state-run retirement plan and automatically enroll employees who do not have access to an employer-run retirement plan. Senate Bills 807 and 808 would mandate that employers with one or more employees would be required to offer an opt-out option for their employees, withhold contributions, and remit those contributions to the state, adding one more regulation for employers.

Despite NFIB’s testimony opposing the bills, they passed out of the Senate Labor Committee on March 19, 2026.  While the bills are expected to pass the Senate, they are not expected to pass the House.

Prohibitions on Job Application Questions

Senate Bill 145 would prohibit employers from seeking information on potential employees’ past wages, fringe benefits, credit score, or credit history, limiting a small business owner’s ability to assess potential employees.

Despite NFIB’s opposition, SB 145 passed out of the Senate Labor Committee on March 12, 2026. The legislation is expected to pass the Senate but is not expected to pass the House.