Michigan HR Legal Update | July 2026

By Marcy McMahon, Director of Client Success | HR Collaborative

From federal reporting requirements to Michigan employment law updates, we keep our finger on the pulse of potential HR changes that should be on every employer's radar.

Employment laws continue to evolve, and staying ahead of new requirements can help organizations avoid compliance issues while making informed business decisions. Here is the current intel on federal and Michigan updates are either taking effect now or moving through the regulatory process, making this a good time to review your HR policies and procedures.

Michigan HR Legal Updates Employers Should Know from July 2026

1. EEOC Proposes Eliminating Annual EEO-1 Reporting

One of the most significant proposed federal HR changes could affect how employers report workforce demographic data in the future.

Currently, most employers covered by Title VII are required to submit an annual EEO-1 report detailing employee demographics by race, ethnicity, sex, and job category. This requirement applies regardless of whether an employer has ever been involved in an EEOC investigation or discrimination claim.

The U.S. Equal Employment Opportunity Commission has issued a Notice of Proposed Rulemaking (NPRM) proposing to eliminate the annual EEO-1 reporting requirement. According to the EEOC, annual reporting costs employers an estimated $275 million each year, while costing the agency approximately $4 million annually to administer.

If finalized, employers would no longer submit routine annual reports. However, the EEOC would still retain the authority to request workforce demographic information during the investigation of a specific discrimination charge.

What employers should do now 

Nothing changes today.

The proposal is currently in the public comment phase, and employers should continue completing all required EEO-1 reporting until a final rule is issued.

Learn more from the EEOC here: EEOC Proposed Rescission of Annual Race and Sex Reporting Requirements

2. IRS Updates Standard Mileage Rates for the Second Half of 2026 

Organizations that reimburse employees for business travel should review the updated IRS mileage rates effective July 1 through December 31, 2026.

The updated standard mileage rates are:

• Business (self-employed and business use): 76¢ per mile

• Medical travel: 23.5¢ per mile

• Moving (active-duty military only): 23.5¢ per mile

• Charitable organizations: 14¢ per mile

  
  

While employers are not legally required to reimburse at the IRS standard rate, many organizations use these rates as a benchmark for reimbursement policies and expense programs.

Now is a good time to:

• Review employee expense reimbursement policies.

• Update payroll or expense management systems if needed.

• Communicate any reimbursement changes to employees.

  
  

View the official IRS mileage rates: IRS Standard Mileage Rates

3. Michigan Unemployment Insurance Agency (UIA) Law Changes Are Now in Effect 

Several important changes to Michigan's unemployment insurance laws have taken effect and may impact both employers and employees.

Key updates include:

• Increased work search requirements 

Individuals receiving unemployment benefits may now be subject to expanded work search expectations intended to encourage a quicker return to employment.

• New protections for domestic violence survivors

Michigan law now includes additional unemployment benefit protections for employees leaving employment due to qualifying domestic violence-related circumstances.

• Expanded Work Share flexibility 

Michigan has broadened flexibility within its Work Share program, giving employers additional options to reduce employee hours during business slowdowns while helping workers maintain partial unemployment benefits.

Employers should review these changes with their HR and payroll teams to understand how they may affect unemployment claims, workforce planning, and employee communications.

Read the full Michigan UIA updates: Michigan UIA Law Changes

4. Michigan Modernizes Youth Employment Work Permits 

Beginning October 2026, Michigan will modernize how youth employment work permits are issued.

Historically, work permits have been managed through individual school districts. Under the updated Youth Employment Standards Act (YESA), permits will transition to a centralized statewide online system, creating a more consistent and streamlined process for employers, students, parents, and schools.

For employers that regularly hire minors, this change may simplify onboarding while reducing administrative delays associated with obtaining work permits.

Organizations that employ seasonal workers, interns, or student employees should familiarize themselves with the new process before it becomes effective.

Learn more about Michigan's Youth Employment Standards Act: Youth Employment Standards Act (YESA)

What Employers Should Do Next

Not every legal update requires immediate action, but staying informed helps organizations avoid surprises and plan ahead.

We recommend employers:

• Continue complying with current EEO-1 reporting requirements until the EEOC finalizes any rule changes.

• Update mileage reimbursement policies to reflect the new IRS rates where applicable.

• Review Michigan unemployment law changes with HR and payroll teams.

• Prepare for Michigan's new online youth employment permit system before its October implementation.

  
  

Employment laws rarely stand still. Taking a proactive approach today can save significant time, reduce compliance risk, and help your organization respond confidently as new requirements emerge.

If you're unsure how these updates affect your organization, the HR Collaborative team can help you understand what has changed, what actions are needed, and what can wait.

Our HR experts are always here to help. Contact us to start the conversation today.