A new Michigan law shifts the full cost of FBI and state police background checks to employers—and most small health service providers don't know it yet.
Most Michigan professional services owners in health care assume background check costs are shared with job applicants. They're about to learn otherwise.
Michigan House Bill 6401, which amends the Public Health Code (MCL 333.20173a), contains a provision that will require covered health facilities and staffing agencies to absorb 100 percent of the cost of FBI and state police fingerprint and criminal history checks for every new hire and contractor. Applicants cannot be charged any portion of these fees.
The requirement applies to "covered facilities"—a category that includes home health agencies, homes for the aged, and other health care employers required to conduct criminal background checks under state law. Staffing agencies that place workers in these settings are also covered.
For small operations, this matters. A single background check can cost $50 to $100 or more depending on the scope. When you're hiring multiple positions per year, those costs add up quickly.
The law does create a state reimbursement mechanism for homes for the aged—but with a significant limitation. The reimbursement is capped at an annual allotment covering approximately 40 to 50 checks per year. Facilities that conduct more background checks than that cap must cover the excess costs themselves with no state support.
For larger facilities or those with high turnover, this cap means most background check expenses will come directly out of operating budgets.
The provision becomes effective 90 days after the bill is enacted, per Enacting Section 1 of HB6401. The requirement is contingent on two companion bills—HB6400 and HB6402—also being enacted. The specific language governing the fee prohibition appears in Section 20173a(4) of the Public Health Code.
If your organization conducts criminal background checks on job applicants, review your current hiring procedures and fee structures. Confirm whether your application materials or offer letters currently require applicants to pay for background checks. If they do, you'll need to revise those documents and adjust your hiring budget to account for the new cost allocation.
If you use a staffing agency to fill positions, clarify with them how they plan to comply with this requirement and whether it will affect placement fees or other costs you pay.
For homes for the aged specifically, begin tracking your annual background check volume now. If you regularly exceed 40 to 50 checks per year, factor the uncovered costs into your 2025 budget planning.
For detailed guidance tailored to your specific business model, contact your industry association or legal counsel familiar with Michigan health care employment law.