Minimum Wage & PML, Michigan

A few weeks ago, we reported on the new Minimum Wage and Paid Medical Leave (PML) laws for the State of Michigan. We are pleased to report that the notices for both laws have been released, with publication dates of 1/2019.

Details of the Updated Minimum Wage Law

Minimum Wage Increases

Based on the new law, the Minimum Wage notice now includes the following stepped increases over a period of three years:

Effective March 29, 2019, the minimum wage will be $9.45 per hour and the minimum hourly tipped wage will be $3.59.
Effective January 1, 2020, the minimum wage will be $9.65 per hour and the minimum hourly tipped wage will be $3.67.
Effective January 1, 2021, the minimum wage will be $9.87 per hour and the minimum hourly tipped wage will be $3.75.

However, employers should note that the law calls for multiple minimum wage increases through the year 2030, when the wage will reach $12.05.

Details of the New Paid Medical Leave Act

The Paid Medical Leave Act notice states that, effective March 29, 2019, the Act applies to employers with 50 or more employees. The employees are described as individuals from whom an employer must withhold federal income tax.

The notice features a long list of employees not covered by the Act, including executive, administrative, and professional overtime-exempt employees; employees covered by a private collective bargaining agreement; federal government employees; individuals whose primary work location is not in Michigan; and employees 16–19 years of age who are paid Michigan’s youth training wage.

Accrual of Paid Medical Leave

Paid Medical Leave (PML) accrual begins on March 29, 2019, or upon commencement of employment, whichever is later. Leave is accrued at a rate of 1 hour for every 35 worked, with a maximum accrual of 1 hour per calendar week and 40 hours per benefit year.

Employees may carry over up to 40 hours of PML from one benefit year to the next, but employers aren’t required to let their employees use more than 40 hours in a single benefit year. Employers may even choose to provide the total amount of PML at the beginning of the benefit year or on the date that the employee is eligible, on a prorated basis.

Employers also have the option to require employees to wait until the 90th calendar day after they begin employment before using their accrued paid medical leave.

Usage of Paid Medical Leave

Leave may be used for an employee’s own or a family member’s care for the following reasons:

Physical or mental illness, injury, or health condition
Medical diagnosis or treatment
Closure of a workplace or school due to a public health emergency
Exposure to a communicable disease that would affect the health of others

Uses of paid medical leave for employees who are victims of domestic violence or sexual assault include the following:

Medical care or psychological counseling
Assistance from a victim’s services agency
Relocation and legal services
Participation in a related civil or criminal proceeding

Filing a Complaint

Under the Paid Medical Leave Act, employees may file a complaint against an employer within 6 months of an alleged violation. The Michigan Department of Licensing and Regulatory Affairs is responsible for investigating complaints and, if appropriate, attempting mediation.

Employer Penalties

Employers who improperly withhold paid medical leave are subject to a maximum fine of $1,000. In addition, employers who choose to violate the posting requirement for the Paid Medical Leave Act notice will be subject to a maximum fine of $100.

Compliance Made Easy!

If you have not already done so, we encourage you to order our 1-Year Compliance Plan, so that you will automatically receive the updated Michigan poster as soon as it is available. And because we provide free poster updates for mandatory changes, no matter how many occur during the 12-month period, you can always count on Poster Compliance Center to keep your business in compliance!