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Governor Rick Snyder signed bills today implementing changes to Michigan’s minimum wage and paid sick time laws. These changes have the potential to affect most employers with Michigan employees.
Public Act 368 of 2018 (“PA 368”) effectively slows down the Legislature’s initial proposal to increase Michigan’s minimum wage significantly. Under the new law, Michigan’s minimum wage will be $9.45 in 2019; $9.65 in 2020; and $9.87 in 2021. PA 368 will not implement a $12 per hour minimum wage increase until 2030. However, no minimum wage increases will be implemented if the unemployment rate is 8.5% or greater in the preceding year.
In addition, PA 368 implements the following:
- Changes in overtime pay for police and firefighters
- Changes in overtime pay for employees of public hospitals and health care services
Public Act 1175 of 2018 (“PA 1175”) provides certain employees with mandatory paid medical leave for personal or family health needs. Subject to limitations in the legal text, nonexempt employees will accrue one hour of paid medical leave for every 35 hours worked up to 40 hours per year. The accrual begins as of December 14, 2018. An employer that provides at least 40 hours of paid leave to eligible employees each benefit year is presumed to be in compliance, with PTO, vacation, or paid personal days provided under an employer’s current policies included in that definition. Employers may also comply by providing eligible employees with 40 hours of paid leave at the start of the benefit year. Leave must be used in one hour increments unless an employment policy provides otherwise.
The full text of the laws are available here:
https://www.legislature.mi.gov/documents/2017-2018/billenrolled/Senate/pdf/2018-SNB-1171.pdf
https://www.legislature.mi.gov/documents/2017-2018/billenrolled/Senate/pdf/2018-SNB-1175.pdf
Employers are encouraged to consult knowledgeable counsel concerning decisions with respect to compliance under the new laws.
This client alert is published by Dickinson Wright PLLC to inform our clients and friends of important developments in the field of labor and employment law. The content is informational only and does not constitute legal or professional advice. We encourage you to consult a Dickinson Wright attorney if you have specific questions or concerns relating to any of the topics covered in here.
