Michigan adopts paid sick leave, minimum wage hike

Effective beginning 2019

Posted September 14, 2018

On September 5, the Michigan legislature adopted an initiative that will require employers to provide employees with accrued sick time for certain reasons. Another adopted initiative will increase the state’s minimum wage.

Paid sick leave

The Earned Sick Time Act will apply to all employers with one or more employees, but those with fewer than 10 employees will have some lower mandates. All employees are eligible to accrue and use the leave.

If an employer already provides paid leave that meets the new law’s requirements, it will be seen as in compliance. For this purpose, “paid leave” includes but is not limited to paid vacation days, personal days, and paid time off.

Employees may take sick leave for the following general reasons:

  • The employee’s own condition, including preventative care;
  • The employee’s family member’s condition or preventive care;
  • For reasons related to victims of domestic violence or sexual assault;
  • For meetings at school or place of care related to the child’s condition or the effects of domestic violence or sexual assault on the child; or
  • For closure of the employee’s place of business due to a public health emergency.

Family members include the usual suspects, along with domestic partners, grandparents, grandchildren, siblings, and any other individual related by blood or affinity whose close association is equivalent to a family relationship.

Employees accrue one hour of sick leave for every 30 hours worked. Employers with fewer than 10 employees must allow employees to use up to 40 hours of sick leave a year, while other employers must allow employees to use up to 72 hours of sick leave a year.

Employees can be expected to provide notice of the need for leave, and to provide reasonable documentation supporting the leave.

Employers must provide employees with information regarding the law’s provisions, and must display a poster with related information.

Minimum wage hike

Under the Improved Workforce Opportunity Wage Act, the state’s minimum hourly wage rate will increase annually for the next four years as follows:

  • Beginning January 1, 2019, $10.00
  • Beginning January 1, 2020, $10.65
  • Beginning January 1, 2021, $11.35
  • Beginning January 1, 2022, $12.00

Every October beginning in October 2022, the state treasurer shall calculate an adjusted minimum wage rate.

For tipped employees, the wage will also increase, essentially eliminating the lower tip wage until it is the reaches the minimum hourly wage, as follows:

  • Beginning January 1, 2019, 48% of the minimum wage
  • Beginning January 1, 2020, 60% of the minimum wage
  • Beginning January 1, 2021, 70% of the minimum wage
  • Beginning January 1, 2022, 80% of the minimum wage
  • Beginning January 1, 2023, 90% of the minimum wage
  • Beginning January 1, 2024 and thereafter, 100% of the minimum wage

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