LANSING -- Bosses may lose the ability to fire employees based on anything legal they do off the clock.

A new bill would make it illegal for an employer to fire, demote or discriminate based on what an employee does in his or her free time, said sponsor Rep. Lee Gonzales, D-Flint. The ban would not apply if the worker's action are illegal, he added.

"It's employee privacy protection," Gonzales said. "We ought to protect people's rights."

The rights of the business must be protected as well, said Bonnie Bochniak, government relations director of the Michigan Business and Professional Association (MBPA).

This legislation could drive more businesses away from the already struggling Michigan economy, she said.

The MBPA, which represents over 20,000 small and medium businesses, is concerned about employers' rights, Bochniak said.

"There are so many businesses leaving right now, this could be the final straw that broke the camel's back," she said.

"The state mandates so much already," she added, and any regulations on free time activities would be just one part of the job selection process.

The issue came to light two years ago when Weyco Inc. of Okemos, an insurance and employee benefit provider, banned its employees from smoking on or off the job as a way to keep company health insurance costs down, he said.

Weyco personnel had to take random blood tests to prove that they were smoke-free, and several people lost their job, said Ken Fletcher, legislative director for the Michigan AFL-CIO.

"That's an overreach," he said.

The AFL-CIO strongly supports the legislation, Fletcher said.  "Employers shouldn't be able to control workers' legal actions. We hope to try to move this issue forward."

The bill is largely a preventative measure, Gonzales said, and it's unknown how many Michigan employers impose similar restrictions on their employees.

Co-sponsors include Democratic Reps. George Cushingberry of Detroit, Steve Bieda of Warren, Andy Meisner of Ferndale and Fred Miller of Mount Clemens.

Fletcher predicted that such demands will only increase as companies look for ways to cut their operating budget.

"We've got to put a stop to it, although I don't think it's widespread yet," he said.

Smoking regulations are the primary target for the proposal, but alcohol and exercise mandates may not be far behind, he said.