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On March 18, 2015, Snyder signed an executive order to form the Michigan Agency for Energy with in LARA in 60 days. On January 17, 2013, Governor Snyder ordered that the Office of Financial and Insurance Regulation be transferred out of the Department to form a new Michigan Department of Insurance and Financial Services effective March 19, 2013. On December 6, 2018, the department formed the Bureau of Marijuana Regulation concurrent with the legalization of recreational marijuana to handle both types of possession. On February 4, 2019, Governor Gretchen Whitmer ordered that the Michigan Agency for Energy be transferred out of the department and into the Department of Environment, Great Lakes, and Energy as the Office of Climate and Energy.

In April 2011, Governor Snyder renamed the Department to the "Department of Licensing and Regulatory Affairs" (LARA), transferring the Michigan Next Energy Authority, Michigan State Housing Development Authority, Bureau of Workforce Transformation, the Council for Labor and Economic Growth, and Land Bank Fast Track Authority to the Michigan Strategic Fund. Agencies transferred to the LARA from the Michigan Department of Community Health were the Bureau of Health Professions, Bureau of Health Systems, and the Controlled Substances Advisory Commission. Transferred from the LARA to the Michigan Department of Civil Rights were the Disability Concerns Commission, Division on Deaf and Hard of Hearing, Pacific American Affairs Commission, and Hispanic/Latino Commission. The independent Michigan Administrative Hearing System was also created within the Department under the reorganization plan.

In 2008, Governor Granholm moved various energy-related programs from the Michigan Department of Agriculture and elsewhere to the Department and renamed the Department to "Michigan Department of Energy, Labor & Economic Growth" (DELEG). The various programs transferred were the "No Worker Left Behind" green jobs training initiatives, Michigan's new energy efficiency building code, the Public Service Commission and energy efficiency programs, the Office of Sustainability, the Renewable Fuels Commission, and the State Energy Office.

In 2003, Governor Granholm issued an executive order renaming the Department to the "Department of Labor and Economic Growth." A few boards were transferred from the Family Independence Agency, and some functions of the Fire Marshal Division of the Department of State Police were transferred to its Bureau of Construction Codes and Fire Safety. With that same Executive order, the Brownfield Redevelopment Single Business Tax Credits and a merged Metropolitan Extension Telecommunications Rights-of-Way Oversight Authority and Michigan Broadband Development Authority were moved from the Department of Treasury to the Department. From the Department of Management and Budget, Michigan Next Energy Authority, Michigan Strategic Fund were transferred. The Department of Career Development was also merged with the Department under this executive order.

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The Department, as the Department of Commerce, was formed in 1965 by Section 225 of the Executive Organization Act of 1965, 1965 PA 380, MCL 16.325. The Michigan Department of Licensing and Regulation was abolished with most responsibilities transferred to the newly-formed Department. It was renamed the Department of Consumer and Industry Services under an executive order issued in 1996 by Governor John Engler, merging most of the Department of Labor within the Department of Commerce. Engler also transferred some responsibilities of the former Commerce Department to the Michigan Jobs Commission.