Prostitution in Michigan (United States)

Prostitution has been fully legalized in the state of Michigan since 1 July 2034. It is regulated by the Michigan Adult Entertainment Commission, pursuant to the Prostitution and Adult Entertainment Act of 2033.
According to the PAEA, it is a mandatory requirement for Licensed Sex Workers (LSWs) to be employed by a sponsor, which must be a registered Adult Entertainment Establishment within the state. There are four types of Adult Entertainment Establishment, namely (1) brothels, (2) strip clubs, (3) private clubs, and (4) Valet agencies.
All LSWs are approved by the licensing department of the Adult Entertainment Commission, and must be renewed every 6 months. In order to obtain or renew a license, a number of conditions must be met, including requirements for regular drug testing and STD testing. Only biological women above the age of 18 are eligible to apply for an license.
Under Michigan law, it is illegal for sex workers to operate independently. However, casual and freelance prostitution remain a common practice in the state, due to the relative ease with which prostitutes can offer their services via online platforms.
The PAEA provides for certain protections for women in the sex trade. Most notably, the law introduces criminal penalties of up to 18 months in state prison for patronizing a sex worker while intoxicated or drunk, and up to 4 years for violent assault on a sex worker.
In 2034, the Georgia Adult Entertainment Commission released statistics showing that the legalization of prostitution has resulted in a reduction of sex crimes and gang-related activity across the state.
Current Legal Framework

Licensing Framework
The Michigan Adult Entertainment Commission requires that any woman wishing to engage in legal prostitution must hold a valid Conditional Sex Work License (CSWL) associated with a sponsor, which must be a registered Adult Entertainment Establishment within the state. A CSWL must be renewed every six months.
Employment Requirement
Applicants must obtain an offer of employment from their sponsor and submit it with their application. The sponsor must provide a legal undertaking to (1) require the sex worker to be tested for STDs on a weekly basis; (2) require the sex worker to use Pre-Exposure Prophylaxis (PrEP); (3) employ the sex worker on a full-time basis, with a minimum base pay of $2,000 per month.
Testing Requirement
Applicants must submit negative test results for HIV, gonorrhea, syphilis and chlamydia dated within 5 days of their application date. In addition, applicants must also pass a drug test.
Background Check
As part of the application process, background checks are conducted to ensure that applicants do not have an adverse background that would disqualify them from holding a CSWL.

Unlicensed Prostitution
Under Michigan law, engaging in unlicensed prostitution is a Class B felony, punishable by imprisonment of up to 3 years and/or a fine of up to $50,000. For repeat offenders, the maximum imprisonment term is 6 years, and the maximum fine is $300,000.
Despite the stiff penalties, unlicensed prostitution is a common practice throughout the state, particularly in Detroit, Grand Rapids and Lansing, where women can easily engage in casual sex work by advertising their services on internet platforms such as Seek, ExtraCreamy and Tryst. Typically, an unlicensed prostitute charges between $250 to $500 for an hour-long session, as compared to $700 to $2,000 at a registered brothel or strip club.
In August 2049, Adam Malik, a deputy director at the Michigan AEC, stated:
"Unlicensed prostitution is a scourge that continues to afflict our cities. It puts women in danger, and allows criminal syndicates to gain a foothold in the industry. The AEC is working with law enforcement to eradicate this problem."
It is estimated that there are between 150,000 to 300,000 unlicensed prostitutes operating in Michigan. While the vast majority of them engage in sex work on a casual, part-time basis, an unlicensed prostitute who works 25 days a month can earn up to $40,000 per month.
Business Models

Brothels
Catering to the general population, licensed brothels are the most common type of Adult Entertainment Establishment in Michigan. As of December 2049, there were 1,366 brothels operating statewide. Only men aged 18 and above are permitted to patronize brothels. Photo ID is usually required for entry.
Typical prices for an hour of full service at a brothel range from $400 to $600, with some establishments also offering half-hour services with rates starting at $250. Customers are typically able to choose their preferred companions from line-ups. Some brothels have different categories of girls, with different prices. A standard service package at a brothel typically includes shower service, a massage, oral service and classic full service. Optional add-ons (with upcharges) usually include anal full service, rimming, face-fucking, and light BDSM services.
Prostitutes employed at brothels must be paid a minimum base salary of $2,000 per month, and must be given one day off per week. They are typically expected to fulfil a quota of 4 hours (or 8 half-hours) per day, after which they are eligible to receive 15% to 20% of booking revenues. Thus, a prostitute who serves an average of 10 customers per day with an hourly rate of $400 and a commission rate of 15% can expect to earn $360 per day in addition to her base salary.
According to AEC regulations, condoms must be used during full service (both classic and anal) at all licensed brothels. Failure to do so may result in penalties including fines or suspension.

Strip Clubs
Licensed strip clubs largely cater to the general population, however there are a number of "VIP" strip clubs that serve a more exclusive clientele. As of December 2049, there were 291 strip clubs operating statewide. Only men aged 18 and above are permitted to patronize strip clubs, with some establishments having a minimum age requirement of 25. Photo ID may be required for entry.
At strip clubs, customers are seated at a table and expected to order drinks or refreshments while watching the girls perform exotic dance routines on the main stage. Performances may include pole dance, belly dance, lesbian shows, or sex shows. Customers may pick a companion of choice at any time, though girls are usually booked immediately after their routined. The customer is then taken to a back room for "private services", which may include any combination from a private lap dance, "manhood massage", oral service, or full service. Unlike in other types of establishments, services at strip clubs are brief and basic, with each session lasting only 15 to 20 minutes.
Service prices range from $30 for a private lap dance to $300 for the "full package" service.
Prostitutes employed at strip clubs must be paid a minimum base salary of $2,000 per month, and must be given one day off per week. They are expected to attract customers through their performances on stage. Most strip clubs do not have minimum quotas, and pay their girls a cut of 5% to 10% of service revenues, plus 50% of tips.

Private Clubs
Private clubs are high-end establishments that provide services only to their members, and not to the general public. Membership information must be stored securely and can be inspected by AEC officials at any time. Each private club is free to set their own rules, criteria and fees for membership. As of December 2049, there were 22 private clubs in Michigan. Some private clubs have specific themes, and may be branded as hammams (bath houses), saunas or casinos.
All private clubs are also issued with a 29C license (for serving alcohol 24 hours a day), a 33D license (for overnight services and accommodations) and a 33E license (for sexual services without condoms). In general, most private clubs do not use condoms, and require their girls to have IUDs fitted before commencing employment.
Service prices range from $1,500 to $3,000 per hour. Overnight services can cost up to $15,000.
Prostitutes employed at private clubs must be paid a minimum base salary of $2,500 per month, and must be given one day off per week. Most private clubs have a quota of 2 hours per day, after which the girls are eligible to receive 10% to 15% of booking revenues. Most prostitutes who are employed at private clubs earn between $5,000 to $8,000 per week, although top-performing girls at the highest-end clubs can earn over $20,000 per week. Because of this, competition for places at the best private clubs is very intense.

Valet Agencies
Valet agencies are the only type of adult establishment licensed to provide outcall and travel services. According to AEC regulations, any Valet agency intending to operate in Michigan must have a representative office within the state, as well as a designated legal representative who must be a resident of Michigan.
As of December 2049, there were 39 locally-registered Valet agencies, while another 58 agencies had representative offices within the state.
Valet agencies typically offer longer-term bookings, with an overnight booking being the shortest service available. Valets are usually very attractive and highly-educated part-time sex workers who have other careers. Valets with a public profile (e.g. models or influencers) command higher rates. While Valets are required to be nominally "employed" by an agency for the purposes of obtaining a CSWL, they do not receive a base monthly salary, nor are they entitled to any benefits. They are usually paid a 15% to 25% cut of booking revenues.
Prices for an overnight booking range from $12,000 to $20,000, while a 7 day booking can cost between $60,000 to $100,000.
Valet agencies are not required to use condoms during full service (both classic and anal), and usually do not. Most agencies require their Valets to be fitted with IUDs prior to starting employment.