PAID MEDICAL LEAVE ACT
Starts March 29, 2019
Public Act 338 of 2018
Michigan has adopted a new Paid Medical Leave Act effective on March 29, 2019.
The Act requires that Employers pay up to 40 hours per year for medical leave. It applies to Employers having 50 or more W-2 employees.
The Act requires the accrual of 1-hour of paid medical leave for each work week in which 35 or more hours are worked by eligible employees.
The law requires the mandatory posting of a notice to all employees explaining the rights of employees to paid medical leave under the Act.
However, the posting is not the policy.
As a courtesy, the posting can be found at the State of Michigan website by clicking here.
There is one decision that Employers have to make. Each Employer must decide how to implement the Policy. There are two Options:
Option #1: Accrual and carry over. If the Employer wants to allow employees to take their leave time as it is accrued throughout the year, then the Employer must allow its employees to carry over a maximum of 40 hours of accrued but not taken leave hours to the next year.
Option #2: Immediate use and no carry over. If the Employer allows employees to take their 40 hours of leave time at the beginning of each benefits year (i.e. before the leave time is accrued), then the Employer is not required to allow its employees to carry over the 40 hours of accrued but not taken leave hours from year to year.
Of course, there are numerous exceptions to which employees can earn the paid leave and how the Employer allows the leave to be taken; for example in 1-hour increments, or in accordance with the other written policy guidelines.
Please contact our office to arrange for the timely rollout of this new mandatory paid leave benefit covering your employees.
Zeigler Townley, PC