Court Ruling on Michigan's Paid Sick Leave and Minimum Wage Laws Could Impact Your Business
The Michigan Court of Claims recently ruled the "adopt and amend" strategy used to implement Michigan's Paid Medical Leave Act (PMLA) was unconstitutional. A motion to stay was filed while an appeal is pending.
Unless a stay is granted and the decision reversed, Michigan's paid sick leave law will require every size and type of business and class of employee to receive 72 hours per year of paid sick leave, while the state's minimum wage will increase to $12/hour.
The current PMLA which was effective March 29, 2019 requires employers with 50 or more employees to provide up to 40 hours per year paid sick leave to certain employees for qualifying life events (i.e. mental or physical illness or injury of an employee or family member, employee or family member who is a victim of domestic violence or sexual assault.) Employers with less that 50 employees are exempt from the act.
Employer compliance requirements are uncertain at this point. Until a judgement is rendered, businesses should operate as usual.
Stay tuned for updates as this issue progresses. Employers can also monitor the Michigan Department of Labor and Economic Opportunity's website for the most current updates.
Koppinger & Associates offers solutions to navigate the complex world of compliance
