Michigan Legislature Approves Minimum Wage and Paid Sick Leave Initiatives

September 10, 2018

The Michigan legislature has adopted two ballot initiatives: the Michigan One Fair Wage that would gradually raise the state's minimum wage to $12 an hour, and Michigan Time To Care that would mandate that employers allow workers to earn one hour of paid sick time for every 30 hours worked. Currently, Michigan's hourly minimum wage is $9.25. The new law would gradually raise the state's minimum wage from $9.25 per hour to $10 in 2019, $10.65 in 2020, $11.35 in 2021 and $12 in 2022, with yearly inflationary adjustments afterward. The paid sick leave law would require that workers earn one hour of paid leave for every 30 hours worked. Employees at businesses with at least 10 workers could use up to 72 hours of paid leave a year, unless an employer selects a higher limit. Those working for smaller employers could use up to 40 hours of paid time and another 32 hours of unpaid leave. Barring any changes, the new laws will be effective April 1, 2019. We recommend all employers have their Employee Handbook reviewed on an annual basis by SESCO to ensure compliance with all federal and state requirements.