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Paid Sick Leave, Minimum Wage and Your Business

November 28, 2018

Earlier this year, the group Michigan Time to Care started a ballot initiative to provide paid sick leave and raise the state’s minimum wage. The proposal received enough signatures to have a place on the ballot in November. However, the Michigan Legislature approved both proposals prior to November, keeping the initiatives off the ballot. Both are now scheduled for a vote on April 1, 2019, and can have major implications for your business. Here’s what you need to know about the proposals and how they’ll affect you.

What does the proposed bill say?

This significant change relates to the mandatory leave policy currently in place, requiring businesses to provide paid sick leave to their employees. For every 30 hours worked, employees will be eligible to accrue one hour of sick leave.

In organizations with more than 10 employees, employees will be allowed to accrue a minimum of 72 hours of paid time off per year. Organizations smaller than 10 employees must allow employees to accrue a minimum of 40 hours paid sick leave, supplemented by 32 hours of unpaid leave.

A seven-day notice for planned time out of office can still be required by employers for any employee looking to use paid sick leave. This doesn’t prevent an employee for calling off work at any other time, but that will be unpaid leave.

The other proposal increases the minimum wage to $12 an hour.

What does this mean for my business?

Currently, there is no need to take any action, as the laws aren’t set to take effect until April 2019. Although the legislature approved the proposals for the time being, there is a high likelihood they might be changed during the rest of the legislative session. However, AccessPoint does advise its’ clients to account for any extra paid time off this potential law may provide when planning for 2019.

For more information, check out the Detroit Free Press article on the newly adopted bill or follow along with AccessPoint for the latest updates on this matter.

A complete transcript of proceedings from the day the initiatives were passed is also available.

INSIGHT WRITTEN BY:
AccessPoint Team