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:
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.
- October 2019 Industry Alerts Michigan Court of Appeals Holds that Violating Code of Ethics a Legitimate, Non-Discriminatory Reason for Termination
- October 2019 Industry Alerts The Sixth Circuit Reaffirms the “Less Burdensome” Standard for Adverse Actions in Retaliation Claims and Upholds Punitive Damages Against Employer
- September 2019 Industry Alerts DOL Issues Final Overtime Rule Increasing the White-Collar Employee Salary Threshold. Employers Have Until January 1, 2020 to Change Payroll Practices
- September Industry Alerts Pay Transparency and Pay Equity in Ontario
- July 22, 2019 Webinars Strategies for Arbitration Agreements: Yay, Nay or How?
- June 27, 2019 Media Mentions Wendy Hulton Speaks to Canadian Lawyer on Sexual Harassment Training
- April 25, 2019 In the News Dickinson Wright Receives Tops Rankings in 2019 Chambers USA Guide; 42 Attorneys Recognized as Leaders in their Fields
- March 2019 Industry Alerts Employment Law Issues Continue to Evolve with Hairstyle, Sex Gossip, and Emotional Outburst Disability Protections
- January 2019 Industry Alerts NLRB Focuses on “Entrepreneurial Opportunity” to Return to Pre-Obama Board Independent Contractor Test