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

Why Buying a Global Time Tracking Solution Can Benefit Large Services Organizations

Deciding between buying or building has always been a tremendous challenge and the debate still continues in boardrooms across the globe. However, the rise of remote and hybrid forms of…Read More

Global Compliance Desk – New York

New York - Paid Sick Leave Law  Under this blog, we had previously discussed in detail the New York State Paid Sick Leave law (“NYSPSL”) which went into effect on…Read More

5 Ways to Stop Resource Management Inefficiencies

Overruns and delays routinely plague projects, but new, off-the-shelf, integrated project and resource management solutions offer avenues out of traditional bottlenecks. As operation-intensive service businesses apply pandemic lessons to adapt…Read More

Will AI replace consultants?

The onset of AI and smart machines automating formerly-human jobs has been discussed at length as of late -- often in relation to manufacturing and manual labor jobs. And yet,…Read More

Demystifying the millennial workforce: 5 tips from Trunk Club’s Andrew Anderson Devine

Time magazine labels the millennial generation the “most threatening and exciting generation,” infamous for “narcissism [and] its effect: entitlement.” In the workplace, the perception of the millennial workforce is no…Read More

Time and Attendance Orientation Guide

In a growing business, the day will eventually come when managing time and attendance on paper becomes both inefficient and risky, especially when trying to balance things like overtime, paid…Read More
  • Polaris
  • Time & Project Insights
  • Time & Projects Solutions
  • Replicon Products
  • Replicon Users
  • Enterprise Time Tracking
  • Cloud
  • Corporate
  • Professional Services Management
  • Shared Services Management
  • Time and Attendance Management
  • Customer Feature
  • Time Intelligence
  • Industry News
  • Global Compliance Updates
  • Others