On December 14, 2018, Michigan Governor Rick Snyder signed two laws which modified the current minimum wage and paid sick leave legislation. The changes are due to take effect on April 1, 2019. The new law, “Paid Medical Leave Act”, will replace the current “Earned Sick Time Act,” which was only recently passed. Under the new law there are several changes that will impact many businesses. For starters, this applies to all businesses with 50 or more employees. These businesses will now be required to provide eligible employees the opportunity to accrue paid medical leave at the rate of one accrued hour of leave for every 35 hours worked. With the employee being able to accrue up to 40 hours of paid medical leave per benefit year. Additionally, these employees will be allowed to carry over up to 40 hours of unused accrued paid medical leave to another benefit year. New employees will be eligible to accrue paid medical leave time upon hire, however the employer will be allowed to require that employee to wait until the 90th calendar day following employment to use the accrued time.
Which employees are eligible?
Under the Paid Medical Leave Act, eligible employees include all individuals that provide service to the employer and for whom the employer is required to withhold federal income taxes. The employee may either be full or part-time.
Which employees are not eligible?
· Individuals exempt from overtime requirements under the FLSA.
· Individuals covered by a collective bargaining agreement, if they are not employed by a public agency.
· Individuals who are only employed for 25 or fewer weeks in a calendar year for a job that is scheduled for 25 or fewer weeks.
· Individuals who worked on average fewer than 25 hours per work week during the previous calendar year.
What reasons can leave be taken?
Under the Paid Medical Leave Act, paid leave may be taken for either the employee or member of the employee’s family:
· Physical or mental illness
· Health condition
· Medical diagnosis
· Care or treatment/ preventative care
· Victim of domestic/sexual assault
· Childcare if the child care facility has been closed by order of public official.
· Other reasons include: Relocation, meeting with an attorney, participating in a lawsuit regarding domestic violence or sexual assault, or to receive services from victim services organizations.
A family member is defined as: biological or adopted/foster children, a parent(biological, adoptive, foster, step, legal guardian), a spouse, grandparents, siblings, or a person the employee is married to under law.
To learn more, visit: http://www.legislature.mi.gov/documents/2017-2018/publicact/htm/2018-PA-0369.htm