20 February 2019

Deadline Approaching: Minimum Wage Changes and the Michigan Paid Medical Leave Act

In December, Governor Snyder signed the amendments that the Michigan legislature made to the state’s minimum wage laws and the Michigan Paid Medical Leave Act (MPMLA).  As you may recall, the minimum wage changes and the new MPMLA were the result of the Michigan legislature’s adoption of two ballot proposals, which the legislature later amended.  Both of these laws are slated to go into effect on March 29th.

The MPMLA provides that employers with paid time off policies that provide at least 40 hours of paid time off to eligible employees each benefit year are presumed to be in compliance.  But beware:  this presumption is rebuttable.  Simply put – employers need to understand that providing 40 hours of paid time off to employees does not guarantee that you are in compliance with the MPMLA.  Even an employer currently providing 40 hours of paid time off still needs to review its policy language for issues such as employee eligibility (do your part-time employees earn 40 hours of paid time off per year?), the amount of time off provided per year, how that time is provided, and whether time used under its current paid time off policy is protected from disciplinary action under its attendance policy (just to name a few!).

There has been some recent activity suggesting that the state legislature overstepped its bounds when it amended both the minimum wage and MPMLA ballot proposals, and this activity raises a question about the constitutionality of both these laws.  However, as of today, neither of these new laws have been ruled unconstitutional, and they are still slated to go into effect on March 29th.  Employers should continue preparing to comply with both laws by March 29th.  Miller Johnson is closely watching this situation, and we will let you know of any new developments.

If you have any questions about the MPMLA or changes to the minimum wage, please contact one of the authors or a member of the Employment & Labor group.