Proposed Minimum Wage Increase and Paid Sick Leave Laws for Michigan Employers
Recently, the Michigan House and Senate passed bills to raise the minimum wage in the state and to require employers to offer paid sick leave. The bills have not yet been signed by the governor, and current speculation predicts amendments to both initiatives before they become effective.
Under these two new bills, the state minimum wage would gradually increase to $12 an hour by 2022. In addition, under the current Paid Sick Leave legislation, employees would accrue one hour of sick leave for every 30 hours worked. Employees would be able to accrue and use up to 72 hours of sick leave per year. For small businesses (those with less than 10 employees), only 40 of the 72 hours would be paid leave, with the rest being unpaid leave. For employees of businesses with 10 or more employees, all of the 72 hours would be paid leave.
While this legislation is slated to become effective in March 2019 if unchanged and signed by the governor, political battles over proposed ballot initiatives on related issues may result in amendments. These bills were passed in response to ballot initiatives. By adopting the initiatives before the November election, the Legislature can seek to amend the laws after the election with a simple majority vote.
Stay tuned for more information as these issues develop. If you have any questions about these initiatives and their potential effects, please contact one of Honigman’s Labor and Employment attorneys.