Signed by Governor Rick Snyder

Vote Smart's Synopsis:

Vote to pass with amendment a bill that amends laws regarding state minimum wage and employee paid sick leave.

Highlights:

• Defines “eligible employee” as an individual in service to an employer in the business of the employer and from whom an employer is required to withhold for federal income tax purposes (Sec. 2).

• Specifies that “eligible employee” does not include any of the following (Sec. 2):

• An individual who is exempt from overtime requirements;

• An individual who is not employed by a public agency, as under the Fair Labor Standards Act and who is covered by a collective bargaining agreement that is in effect;

• An individual employed by the United States government, another state, or a political subdivision of another state;

• An individual employed by an air carrier as a flight deck or cabin crew member that is subject to the Railway Labor Act;

• An employee described in the Railway Labor Act;

• An employee defined in the Railroad Unemployment Insurance Act;

• An individual whose primary work location is not in this state;

• An individual whose minimum hourly wage rate is determined under the Improved Workforce Opportunity of Wage Act, 2018;

• An individual described in the Michigan Employment Security Act, 1936;

• An individual employed by an employer for 25 weeks or fewer in a calendar year for a job scheduled for 25 weeks or fewer;

• A variable hour employee; and

• An individual who worked, on average, fewer than 25 hours per week during the immediately preceding calendar year.

• Requires an eligible employee to accrue paid medical leave at a rate of at least one hour of paid medical leave for every 35 hours worked (Sec. 3).

• Specifies that an employer is not required to allow an eligible employee to accrue more than 1 hour of paid medical leave in a calendar week (Sec. 3).

• Authorize an employer to limit an eligible employee’s accrual of paid medical leave to not less than 40 hours of paid earned sick time per benefit year (Sec. 3).

• Specifies that an employer is not required to allow an eligible employee to carry over more than 40 hours of unused accrued paid medical leave from one benefit year to another (Sec. 3).

• Specifies that an employer is not required to allow an eligible employee to use more than 40 hours of paid family medical leave in a single benefit year (Sec. 3).

• Authorize an employer to provide at least 40 hours of paid medical leave to an eligible employee at the beginning of a benefit year (Sec. 3).

• Authorize an employer to prorate paid medical leave for eligible employees hired during a benefit year (Sec. 3).

• Specifies that an employer is not required to allow the eligible employee to carry over any of that paid medical leave to another benefit year, if an employer elects to provide paid medical leave to an eligible employee (Sec. 3).

• Specifies that there is a rebuttable presumption that an employer is in compliance with this if the employer provides at least 40 hours of paid leave to an eligible employee each benefit year (Sec. 3).

• Specifies that an employer is not required to include overtime pay, holiday pay, bonuses, commissions, supplemental pay, piece-rate pay, or gratuies in the calculation of an eligible employee’s normal hourly wage or base wage (Sec. 3).

• Defines “paid leave” to include, but not limited to, paid vacation days, paid personal days, and paid time off (Sec. 3).

• Defines “hours worked” as not including, unless otherwise included by an employer, hours taken off from worm by an eligible employee for paid leave (Sec. 3).

• Requires that the department is the trustee for the eligible employee or former eligible employee and to distribute and account for money collected under this bill (Sec. 7).

Vote Smart's Synopsis:

Vote to pass a bill that amends laws regarding state minimum wage and employee paid sick leave.

Highlights:

• Defines “benefit year” as any consecutive 12-month period used by an employer to calculate an eligible employee’s benefits (Sec. 2).

• Defines “paid medical leave” as time off from work that is provided by an employer to an eligible employee (Sec. 2).

• Requires an eligible employee to accrue paid medical leave at a rate of at least one hour of paid medical leave for every 40 hours worked (Sec. 3).

• Specifies that an employer is not required to allow an eligible employee to accrue more than 1 hour of paid medical leave in a calendar week (Sec. 3).

• Authorizes an employer to limit an eligible employee’s accrual of paid medical leave to not less than 36 hours per benefit year (Sec. 3).

• Specifies that an Employer is not required to allow an eligible employee to carry over more than 36 hours of unused accrued paid medical leave from one benefit year to another benefit year (Sec. 3).

• Specifies that an employer is not required to allow an eligible employee to use more than 36 hours of paid family medical leave in a single benefit year (Sec. 3).

• Authorizes an employer to provide at least 36 hours of paid medical leave to an eligible employee at the beginning of a benefit year or on the date the individual becomes an eligible employee (Sec. 3).

• Specifies that an employer is not required to include overtime pay, holiday pay, bonuses, commissions, supplemental pay, piece-rate pay, or gratuities in the calculation of an eligible employee’s normal hourly wage or base wage (Sec. 3).

• Requires an eligible employee, when requesting to use paid medical leave, comply with his or her employer’s usual and customary notice, procedural, and documentation requirements for requesting leave (Sec. 4).

• Specifies that this act does not prohibit an employer from disciplining or discharging an eligible employee for failing to comply with the employer’s usual and customary notice, procedural and documentation requirements for requesting leave (Sec. 4).

• Requires paid medical leave to be used in 1 hour increments (Sec. 4).

• Authorizes an employer to require an eligible employee who is using paid medical leave because of domestic violence or sexual assault to provide documentation that the paid medical leave has been used for that purpose (Sec. 4).

• Prohibits an employer to require that the documentation provided explain the details of the violence (Sec. 4).

Full Bill Text