On July 19th, Sage Solutions Group posted information on ballot initiatives that if passed to a vote, could have a significant impact on employers in the state of Michigan. They are the Michigan Paid Sick Leave Initiative (2018) and the Michigan Minimum Wage Increase Initiative (2018). As promised, Sage has kept an eye on these bills and according to the Detroit News, “Michigan’s Republican-le d Senate on Wednesday approved citizen-initiated legislation raising the state’s minimum wage to $12 per hour and requiring paid sick leave, a move designed to make the proposals easier to amend and keep them off the November ballot”.
It appears that this was a strategic move by the Michigan Senate and it is assumed the House could follow suit this week. One Fair Wage, the backers of the $12.00 minimum wage bill initiative promise to sue over this action stating that it is unconstitutional. While this move is being called an “adopt and amend plan”, the implications for employees and employers alike is significant. Here is a quick review of what is in the legislation:
- Michigan Minimum Wage Increase- Legislation to gradually increase Michigan’s minimum wage to $10 in 2019 and $12 by 2022. The current Michigan Minimum Wage is $9.25 /hr. Tipped employees under this initiative would also be paid full minimum wage in addition to their tips by 2024.
- Michigan Paid Sick Leave- Employees of small businesses (defined as employers with fewer than 10 employees), would be allowed to accrue and use 40 hours of paid sick time per year. Employees of businesses with 10 or more employees would be allowed to accrue and use 72 hours of paid sick time per year. Employees will accrue paid sick leave for themselves or to care for family members. These benefits would extend to victims of domestic violence or sexual assault for medical care, counseling appointments, legal proceedings or relocation. Currently, Michigan law does not require employers to provide paid sick leave to employees (Bridge News and Analysis from the Center of Michigan).
According to the AP, “by passing the initiatives before they could go to voters, the Legislature would only need simple majorities to amend them during the “lame-duck” period in November or December.” Sage will continue to monitor the news coming out of Lansing and provide timely updated information. Should you have any questions regarding this topic or other HR related topics, please contact Sage Solutions Group at 734-855-7187.