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Michigan Revises Paid Sick Leave Mandate and Minimum Wage Increases

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On Friday, December 14, 2018, Governor Rick Snyder signed legislation revising the Earned Sick Time Act, which the Michigan legislature adopted in response to a ballot initiative. Governor Snyder also signed a bill softening planned increases to the state’s minimum wage. We previously reported on the original versions of these bills here.

Michigan’s Paid Medical Leave Act

The newly enacted Paid Medical Leave Act (“PMLA” or the “Act”) revised the Earned Sick Time Act in several respects. First, while the original law required nearly all employers to provide paid leave to employees in 2019, the PMLA only requires paid sick leave for companies that employ 50 or more individuals.  Second, eligible employees will accrue paid sick leave at a rate of one hour for every 35 hours worked, decreasing the original 1-per-30-hours rate of accrual. The Act also expressly allows for an employer to frontload 40 hours of paid sick leave at the beginning of the benefit year, an option that was not included previously. Third, the PMLA allows employers to limit the use of paid sick leave to 40 hours per benefit year, down from the original 72 hours per benefit year. 

This law will take effect in March 2019.  Employers should revise their sick leave policies in advance of that date.

Minimum Wage Changes

The minimum wage changes originally adopted by the Michigan legislature provided for an increase to $12 per hour by 2022, tied future increases to inflation, and eliminated the tip credit.  Under the revised law signed by Governor Snyder, the increase is more gradual, future increases are not tied to inflation, and the tip credit remains in effect.  The new minimum wage increases are as follows:

Year

Minimum Wage

Tipped Minimum Wage

2018

$9.25

$3.52

2019

$9.45

$3.59

2020

$9.65

$3.67

2021

$9.87

$3.75

2022

$10.10

$3.84

2023

$10.33

$3.93

2024

$10.56

$4.01

2025

$10.80

$4.10

2026

$11.04

$4.20

2027

$11.29

$4.29

2028

$11.54

$4.39

2029

$11.79

$4.48

2030

$12.05

$4.58

If you have any questions about these new laws, please contact one of Honigman’s Labor and Employment attorneys.