Global Compliance Desk – Michigan

 

State: Michigan

Changes in compliance are continuous and occurring around the globe. At Replicon, our goal is to make sure you’re never a step behind. Recently, there have been some key developments affecting labour & employment compliance in Michigan. Read on as we cover some of the notable changes in detail.

On September 6, 2018, the Michigan State Legislature voted in favor of adopting the minimum wage and paid sick leave proposals. As result, these issues will no longer appear on the November ballot.

Minimum Wage

The minimum wage proposal passed will increase the state’s minimum wage from $9.25 to $10 beginning January 1, 2019, and ultimately to $12 per hour, per the timeline below:

  • Beginning January 1, 2019: $ 10.00
  • Beginning January 1, 2020: $ 10.65
  • Beginning January 1, 2021: $ 11.35
  • Beginning January 1, 2022: $ 12.00

The current version of the proposal defining tipped employees’ reduced minimum wage rate will be phased out gradually. Tipped employees, like wait staff and bartenders, are currently paid $3.52 per hour. If the tips earned do not increase their hourly rate to or beyond the current minimum wage of $9.25, then employers are supposed to make up the difference. The percentage of the general minimum wage that a tipped employee must be paid will increase each year until there is no difference between the tipped and general minimum wage:

  • Beginning January 1, 2019: 48%
  • Beginning January 1, 2020: 60%
  • Beginning January 1, 2021: 70%
  • Beginning January 1, 2022: 80%
  • Beginning January 1, 2023: 90%
  • Beginning January 1, 2024: 100%

Paid Sick Leave

Employees in Michigan will be entitled to receive one hour of paid sick leave for every 30 hours worked. The current proposal entitles all employees – full-time, part-time, temporary workers, and independent contractors – to use 72 hours in a year.

As of now, Michigan has no requirements for paid sick leave on the record. The new law would allow Michigan workers to accrue paid sick leave for themselves or to care for family members, including situations of domestic violence and sexual assault.

The rules for small businesses, defined as less than 10 employees working during a given week (including part-time, full-time, and temporary workers), would be slightly different. While these employees would still accrue a minimum of one hour of paid sick leave for every 30 hours worked, they would be entitled to use 40 hours a year instead, unless the employer selects a higher limit. If the employee uses more than 40 hours, the employee would be entitled to use an additional 32 hours of unpaid earned sick time. Employees would use their paid leave prior to using unpaid leave.

Barring any changes, the new laws will go into effect in March 2019.

Sajid Mir
ABOUT THE AUTHOR
Sajid Mir
A labor and employment lawyer at Replicon who specializes in global compliance. Replicon provides award-winning products that make it easy to manage your workforce. Replicon is an industry leader in global compliance and has a dedicated team which pro-actively monitors international labor regulations for ensuring proper adherence with specific country rule requirements.
Get started today.
Set up a free trial based on your business needs. Start Free Trial

Common Administrative Challenges with Timesheets and How to Solve Them

There aren’t many people who enjoy sifting through a mountain of paperwork. If you haven’t yet found a reliable time tracking software solution, dealing with the hassle and headache of…Read More

How a Shared Common Data Platform for Project Management Can Create Harmony Across Business Teams

Today, professional services firms use some combination of ERP, CRM, HRIS, PPM, or other software along with their PSA solution. These systems serve different purposes, host different and overlapping data,…Read More

6 Ways to Simplify Remote Resource Allocation and Why It Matters

When you’re an enterprise operating at a global scale with a team of employees working from home, one of your major concerns is proper resource allocation. When it goes wrong,…Read More

Employee time tracking is dead

iBeacons, Bluetooth Low Energy, Proximity sensing and the obsolescence of time tracking as we know it. Businesses have to track the time their employees work for a variety of reasons,…Read More

How Sarbanes-Oxley Impacts HR Departments

Ever since the Sarbanes-Oxley Act (SOX) was passed in 2002, following a spate of high-profile corporate scandals, companies have had to take a wide range of precautions to ensure that…Read More

Reducing Absenteeism with Effective Time Management and Absence Tracking

Workplace absenteeism is a major concern for American companies. According to the US Bureau of Labor Statistics, unplanned absences cost American businesses an average of 2.8 million workdays every year,…Read More
  • Polaris
  • Time & Project Insights
  • Time & Projects Solutions
  • Replicon Products
  • Replicon Users
  • Cloud
  • Corporate
  • Professional Services Management
  • Shared Services Management
  • Time and Attendance Management
  • Customer Feature
  • Time Intelligence
  • Industry News
  • Global Compliance Updates