Published on Tuesday, December 4, 2018
The Michigan Legislature wasted no time addressing the amendment of the expensive and poorly constructed Minimum Wage and Earned Sick Time laws passed earlier this year. Last evening the State House of Representatives followed the Senate’s passing of both laws and sent them to the Governor's desk for signature.
Almost immediately upon return from the Thanksgiving recess bills were introduced to correct the two laws that would dramatically increase the state’s minimum wage and require virtually all Michigan employers to provide what some would say is a disproportionate amount of paid time off. Michigan’s Earned Sick Time law would have exceeded the rest of the nation, including California’s generous paid time off law.
The Minimum wage law passed in July would have taken the Michigan minimum wage from its current $9.25/hr. rate to $12/hr. by 1/1/2022. It would have also increased the tipped employee minimum wage for the current 38% of the standard minimum wage to 100% of minimum wage by 1/1/2024.
Senate Bill 1171 introduced on November 8th modifies the minimum wage law extending the scheduled annual increases to the maximum of $12.00/hr. out to 2030.
The amendment bill (Senate Bill 1175) as passed last week and sent to the Michigan House of Representative and now passed by both houses, moderates the cost of this law considerably. First and foremost, it is amended to only apply to employers with 50 or more employees and after 90 days of employment. This change gives small employers reprieve from the original law’s expensive and burdensome administrative costs. Second, it cuts down the amount of paid leave to one hour for every 35 hours worked up to a total of 40 hours per benefit year. Covered employers will be able to integrate or coordinate existing paid time off benefits (vacation, sick, or personal time) that meet this law’s paid time off benefit requirements.
Categories: EverythingPeople, Compensation and Benefits
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