After a significant amount of debate and anticipation, Governor Snyder signed revised versions of the Paid Medical Leave Act and the Michigan Minimum Wage laws on Friday. After advising our customers to hold off on some of their policy changes, it’s finally time to finalize some handbook and payroll changes.
Here’s some detail to help you out:
Paid Medical Leave Act
The revised version of this act provides eligible employees with 40 hours of paid medical leave time per benefit year (which can be determined by the employer). The time can be used for physical or mental illness, medical treatment, or incidents involving sexual or domestic assault of employees or family members.
Employees are covered if they are non-exempt, work for an organization with 50 or more employees, and work at least an average of 25 hours per week.
The act does not apply to employees who:
- Are temporary or seasonal and work less than 25 weeks in a calendar year
- Are covered by a collective bargaining agreement
- Are employed by the U.S. Government
- Are primarily located in another state.
You can view the full detail of the act here: Paid Medical Leave Act
Currently this act is slated to take effective on April 1st, 2019. MI Time to Care, the group that launched the ballot initiative that inspired this bill, has promised a legal challenge to the passage of the act. They state that the revised act preempted the democratic process and reduced the benefits that were adopted in the original ballot proposal.
Michigan Minimum Wage Law
Some disappointing news for those folks who were hoping to find the gift of their pay increasing to $10 under the tree this year. On an active day of bill signing, the Governor also signed a new minimum wage law that will take effect on January 1, 2019, and raises the minimum wage from $9.25 to $9.45. The original ballot initiative would have raised the minimum to $10 per hour on January 1st, topping out at $12 by the year 2022. The revised act provides a new minimum wage of $12.05 eight years later, in 2030. It also removed adjustments for inflation and can limit future increases if unemployment rates exceed 8.5%.
You can view the full detail of the new minimum wage law here: Michigan Minimum Wage Law
While the results of the legal challenges to this legislation may not be clear, we do expect to see an additional ballot initiative starting for the 2020 election to revisit the Paid Medical Leave Act. If you’ve been holding off on finalizing your handbook, now is the time to finish it up.
Have questions about the best way to incorporate these changes into your handbook? Let us know how we can help!
Best wishes for an amazing holiday season from your friends at HRM!