Latest Compliance News

Michigan Launches Paid Sick Leave Website

05/02/19

Author: Brent Cranfield/Monday, April 29, 2019/Categories: Compliance Corner

Overview:  As previously reported, Michigan’s Paid Medical Leave Act went into effect on March 29, 2019.  Michigan has now launched a website regarding the new Paid Medical Leave Act.  Among other things, the website includes a frequently asked questions section and a mandatory model poster. 

Effective Date: Immediate. 

Details:

As previously reported, the Michigan legislature passed and the Governor signed Senate Bill 1175 which established the “Paid Medical Leave Act,” a paid sick leave law effective on March 29, 2019

Michigan via the state Department of Licensing and Regulatory has now has launched a website regarding the new law featuring frequently asked questions and a model poster.  A sample of the guidance provided is below:

What employers are covered by the act?

The act applies to employers with 50 or more individuals regardless of full or part-time status or how many hours they work. It does not apply to the United States government, other states, or to political subdivisions of other states.

When does an eligible employee begin to accrue paid medical leave?

Accrual begins on March 29, 2019, or upon commencement of the employee’s employment, whichever is later.

How does an eligible employee accrue paid medical leave?

Paid medical leave is accrued at a rate of 1 hour for every 35 actual hours worked; however, an employer is not required to allow accrual of over 1 hour in a calendar week or more than 40 hours in a benefit year.

What is a benefit year?

A benefit year is any consecutive 12-month period used by an employer to calculate an eligible employee’s benefits.

May an employer provide the total amount of paid medical leave all at once?

Yes. An employer may provide at least 40 hours of paid medical leave at the beginning of the benefit year or on the date that the individual becomes eligible during the benefit year on a prorated basis. If an employer adopts this practice, it does not have to permit employees to carry over unused leave to the next benefit year.

Does paid medical leave have to be taken in 1-hour increments?

Yes. Paid medical leave must be used in 1-hour increments unless the employer has a different increment policy set forth in writing in an employee handbook or other employee benefit document.

When can an eligible employee use paid medical leave?

Employees may take paid medical leave for the following:

For domestic violence and sexual assault situations, employees may use paid medical leave for the following:

Who is considered a family member?

Family member includes:

·      Biological, adopted or foster child, stepchild or legal ward, or a child to whom the employee stands in loco parentis.

·      Biological parent, foster parent, stepparent, adoptive parent, or legal guardian of an employee.

·      Spouse or individual to whom the employee is legally married under the laws of any state.

·      Person who stood in loco parentis when the employee was a minor child.

·      Grandparent.

·      Grandchild.

·      Biological, foster, and adopted siblings.

What is the required wage rate for paid medical leave calculations?

Paid medical leave must be paid at a pay rate equal to the greater of either an employee’s regular rate of pay or the Michigan minimum wage rate. The regular rate for a tipped employee is the applicable minimum wage rate.

For a copy of all the frequently asked questions, please see the below: 

https://www.michigan.gov/documents/lara/Paid_Medical_Leave_Act_FAQ_003_644567_7.pdf

Please find below a link to the poster that covered employers with 50 or more employees are required to post “in a conspicuous place accessible to eligible employees.”

https://www.michigan.gov/documents/lara/Paid_Medical_Leave_Act_Poster_644565_7.pdf

For a copy of Senate Bill 1175, please see the below. 

https://www.legislature.mi.gov/documents/2017-2018/publicact/pdf/2018-PA-0369.pdf

Action Required:  Impacted employers should ensure that they are compliant with Michigan’s Paid Sick Leave law and are posting the required poster referenced above. 

Please contact your dedicated service professional with any questions. 


This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal advice.

Resource Corner