Ounce of Prevention/Pound of Cure

Michigan’s Paid Medical Leave Act takes effect on or about March 22, 2019.  Here’s what you need to know.

What Employers Are Covered?

Employers with 50 or more employees (but excluding state and federal governments)

What Employees Are Not Covered?

  • Salaried exempt employees
  • Union employees covered by a collective bargaining agreement ("CBA")
  • Employees scheduled to work 25 weeks or less annually
  • Employees who worked on average less than 25 hours per week in prior calendar year
  • Certain other employees

What Must Employers Do?

  • Maintain a paid time off ("PTO") policy that provides covered employees at least 40 hours of PTO annually

OR

  • For covered employees, accrue one hour paid leave for each 35 hours per week, up to one hour per week and 40 hours per year
  • For covered employees, allow to use up to 40 hours PTO annually and/or carry over up to 40 hours annually
  • Leave accrues starting March 1, 2019 or upon start of employment (although written policy can prevent use of accrued time until 90 days after start of employment)

OR

  • Award covered employees 40 hours PTO at outset of year
  • If PTO is “frontloaded” in this fashion, employers need not allow any carryover to following year

PTO For What?

  • Physical or mental health diagnosis, care, or treatment for covered employee or family member (as defined by the Act)
  • Care or related activities arising from physical or domestic violence toward covered employee or family member
  • PTO may be used in one-hour increments unless employer has different written policy
  • Employer may require supporting documentation to support PTO

Penalties

  • Employees may file administrative claim to recover unpaid leave within six months of violation
  • $1,000 for failure to provide leave
  • $100 for failure to maintain workplace poster
  • Employer must retain records for one year

Questions?  Call Wright Beamer at (248) 477-6300 or email us at info@wrightbeamer.com and talk to one of our experienced employment law attorneys.