Michigan’s new Paid Medical Leave Act was signed into law in December 2018 and was effective March 29, 2019. Although there are many unanswered questions concerning this law, the fundamental aspects of the law are straightforward.
Beginning March 29, 2019, employers with 50 or more employees are required to provide eligible employees 1 hour of paid leave for every 35 hours worked (up to a maximum of 1 hour per calendar week), up to a maximum of 40 hours per calendar year, for medical reasons of the employee and family members. Generally, all employees, including newly hired employees, are entitled to the benefit, except exempt employees, temporary employees (hired to work less than 25 weeks in a calendar year) and part-time employees hired to work less than 25 hours in a work week. Eligible employees can carry-over from year to year up to 40 hours of earned but unused paid leave but there is no requirement for payment in lieu of taking the paid leave, including upon separation of employment. Also, the law provides for use in a minimum of 1-hour increments, unless Company policy provides otherwise.
As an alternative, an employer will be deemed compliant with the new law if the employer provides at least 5 days of a paid time-off benefits, (i.e., vacations, PTO, sick days or the like) at the beginning of a benefit year for use that includes use for paid medical leave described under Michigan’s new law. Under the alternative method, allocation of a pro-rata amount for new hires is required.
Most affected employers will only need to make minor adjustments to their policies to comply with the new Act. Please call if you would like to discuss.
For further information regarding these matters, please contact Mr. Filipp at 248.619.2580 or via email.