Michigan Employers
Michigan’s new Paid Medical Leave Act will go into effect on March 29, 2019. Datatech currently supports sick pay laws in California, Arizona, Oregon, and Washington.
The variance in the Michigan Law that differs from other states is the option to cap the weekly accrual of paid sick leave to 1 hour per calendar week.
We would like to know from our Michigan Employers whether or not they will be implementing the Accrual plan with the weekly cap, or the Upfront plan.
Depending on your responses, we will review programming needed for the weekly 1 hour cap on accrual. If you are a current customer and are in need of further assistance, please contact Datatech Support.
For more information about how Datatech’s software can help you manage your sick pay plans, request a free consultation.
Summary of Act
Currently, Michigan’s Paid Medical Leave Act only applies to businesses that employ 50 or more employees.
| Accrual | Employee earns 1 hour per 35 hours worked, but an employer may limit accrual to 1 hour per calendar week. Employees begin accruing on the effective date or the date of hire (whichever comes later). |
| Using Sick Pay | An employer is not required to allow an eligible employee to use more than 40 hours of paid sick leave in a single benefit year. Employees may use the medical leave as it is accrued. However, an employer may allow new employees to wait 90 days before using their time. |
| Carry-Over | An employer is also not required to allow an employee to carry over more than 40 hours of time from one benefit year to another. Employers do not have to carry over any unused hours. |
| Up Front | At the beginning of the plan year, 40 hours may be provided up front. Employers that have a fixed plan year, for example Jan – Dec, may prorate the hours provided for the remainder of the year plan. |
| Rate of Pay | Normal hourly wage (average hourly rate from the previous pay period), or the base wage for that employee (whichever is higher). |
For more information, click the links below.