Michigan's Minimum Wage &
Paid Medical Leave Laws -
Here We Go Again!
If you’re feeling a bit of whiplash regarding the minimum wage and paid medical leave news in Michigan, you’re in good company. Frankly, I’ve lost track of the number of times this has been the topic of the Fun Socks blog.
As a quick refresher, here’s the history:
In 2018, a petition drive was successfully headed to get both a minimum wage proposal and a provision for earned sick time on the ballot for the fall election. The legislature at that time decided to adopt the ballot proposals, making the ballot initiatives unnecessary. The initiatives were dropped, and the Michigan Earned Sick Time Act and the minimum wage standard were adopted. Then, during the lame duck session after the election, the legislature significantly changed the acts by passing the Paid Medical Leave Act and Michigan’s Improved Workforce Opportunity Wage Act of 2018. Several groups filed a lawsuit challenging the constitutionality of those Acts arguing that the legislature usurped the rights of the people to implement a ballot initiative.
The initial court ruled that the adopt and amend process was unconstitutional, that decision was overturned by the court of appeals, which was just overturned by Michigan’s Supreme Court.
What does this mean to employers?
The Improved Workforce Opportunity Act and the Paid Medical Leave Act have been eliminated. Both will be replaced by the original ballot initiatives that voters were to consider in 2018 and will take effect February 21, 2025.
What will be the new minimum wage?
We’re not certain yet. The Michigan Supreme Court has tasked the State Treasurer with calculating the inflationary impacts that have occurred since the original 2019 effective date of the ballot initiative.
How much paid time off will we need to offer?
Employers with 10 or more employees will need to offer 72 hours of paid time off per year. It will be accrued at a rate of one hour for every 30 hours worked.
Employers with less than 10 employees still need to offer 72 hours of leave time, but only 40 of those hours need to be paid.
Does this apply to all employees?
Yes. It applies to full time, part time, and temporary employees.
What else?
Employers need to allow employees to take their paid sick time in the smallest increment of time tracked by their timekeeping system.
How should we prepare?
Theres’ some discussion that the legislature will step in with new legislation this fall. I think that is unlikely to happen during the height of a presidential election. For now, HR leaders should use the time before February to review their current policies and compare them to the Michigan Time to Care initial ballot initiative to see what changes they will need to make.
Here's the link: https://legislature.mi.gov/documents/2017-2018/initiative/pdf/MITimeToCareFINAL.pdf
The original ballot initiative for the Improved Workforce Opportunity Wage Act link is:
Questions? The HR Consultants at Rose Street Advisors are happy to help!