Michigan’s Earned Sick Time Act will change policies for many employers

UPDATED – 11/30/2018 – Michigan Earned Sick Time Act

In early September 2018, Michigan’s Legislature adopted the Earned Sick Time Act, which applies to all private employers employing one or more individuals, and takes effect on April 1, 2019. It was originally advanced as a ‘citizen initiated/petitioned ballot measure’ to be placed before the voting public. The legislature opted to avoid the ballot initiative by adopting the law as written.

On November 28, 2018, Michigan state senators voted for a bill introduced by Senator Shirkey to dramatically scale back the Requirements for Earned Sick Time Act, specifically that small businesses (fewer than 50 workers) will be exempt.  This act will also not apply to employees exempt from overtime or who work for a private company but are covered by a labor contract

What will the Earned Sick Time Act do?

  • Require employers, with over 50 employees, to provide every employee 1 hour of paid sick time for every 40 hours worked, or 36 hours per year.  This will allow employees to use up to a certain amount of paid sick time in a year for a specified number of purposes, such as illness, medical treatment, absences caused by domestic violence or sexual assault, or meetings related to a child’s school or care.
  • Allow employees to take leave with little advanced notice.
  • Permit employers to request documentation only if the absence is longer than 3 days, and then requires that the employer to cover the employee’s out-of-pocket costs incurred in providing such documentation.
  • Require employers to provide written notice to employees of their rights under the Act, including protections against employer retaliation.
  • Permit aggrieved employees to file claims with the Department of Licensing and Regulatory Affairs or take legal action.

As written, the Earned Sick Time Act could prove challenging for many employers to implement, especially those who have established time-off policies. Employers can comply with the Earned Sick Time Act by providing paid leave (such as vacation, personal days, PTO, etc.), as long as that leave, (1) Accrues at a rate equal to or greater than what the Earned Sick Time Act requires; (2) Is at least the same amount as the Earned Sick Time Act; (3) May be used for the same purposes and under the same conditions.  Employees must begin accruing leave on the law’s effective date or when employment begins (whichever is later) at a rate of at least 1 hour for every 40 hours worked.

What does this mean for employers? 

It is still somewhat unclear what the Earned Sick Time Act will look like come April 1, 2019.  Rest assured that BCN Services will continue to monitor and report on further developments. Meanwhile, employers should take stock of their existing time-off policies, especially if they have separate sick time, vacation time, and personal time policies.

 

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Thom Moore, Partnership Manager