Update on Paid Leave, Minimum Wage Activities
On July 31, 2024, the Michigan Supreme Court ruled that two 2018 ballot initiatives that increased the state's minimum wage and mandated paid sick leave for employers should be enacted, despite never being put to a public vote. The Court determined that the strategy used by the Michigan Legislature to adopt alternative legislation violated the state’s constitution.
In response, the MAA has been in close communication with the Michigan Chamber of Commerce and has joined a coalition that is working with the Legislature to pass practical, commonsense legislation aimed at mitigating the negative impacts of these laws.
The coalition’s objectives include:
- Exempt employers with paid leave policies that meet or exceed the number of hours required under the act, including all forms of unpaid leave.
- Add a small employer exemption or expand the current small employer threshold. Apply Earned Sick Time Act to full- and part-time employees averaging 20 or more hours per week; exempt seasonal, temporary workers, independent contractors, and subcontractors. There’s good precedent and logic to exempting employers with fewer than 50 employees (federal Family Medical Leave Act [FMLA]).
- Each business is different in terms of its needs at the very least time should be limited to use in four-hour /half-day increments; notification should be required prior to the start of a shift unless the employee is incapacitated.
- Remove the language allowing for a private right of action and rebuttable presumption.Enforcement and penalties should be handled by the State.
- Allow employees to front load time off to avoid keeping complicated accruals and to allow the employee to have maximum flexibility.
Click here to view information developed by the Michigan Chamber regarding “Supreme Court’s Ruling on Michigan’s Paid Sick Leave and Minimum Wage Laws: What Needs to Change”
Click here to view a detailed coalition flyer that is aimed at informing lawmakers.
