Client Alert - State’s Paid Sick Leave and Minimum Wage Acts Set to Take Effect on February 21st

State’s Paid Sick Leave and Minimum Wage Acts expected to take effect on February 21st

Michigan employers should not hold their breath waiting for the Michigan Legislature to have the necessary votes to pass legislation to prevent the Earned Sick Time Act (“ESTA”) and the Michigan Wage Act from going into effect on February 21st. The Republican-controlled House passed HBs 4001 and 4002 last week, both of which included language substantially rolling back certain pro-employee policies in the Acts set to go in effect next week; however, the house bills are stuck in the Regulatory Affairs Committee with no scheduled hearing in sight. Last week, the Minority Vice-Chair of the Regulatory Affairs Committee called for a vote to have House Bills 4001 and 4002 sent directly to the Senate floor for voting, but the Democratic majority objected to the vote — leaving the House Bills to likely go nowhere in the Committee.

SBs 8 and 15, with significantly less changes to the ESTA and Minimum Wage Act, are currently set for hearing this week, but due to the timing of the hearings, the lack of bipartisanship of the bills and the rapidly approaching effective date of the Acts, there is only a very slim likelihood that the bills will prevent the acts from going into effect next Friday.

The Acts substantially change how businesses are required to address minimum wages, restaurant tipped wages, mandatory paid sick leave for all employees (even part-time), broadening the scope for using sick leave, and the accrual of sick leave to subsequent years.

How Schenk & Bruetsch Attorneys Can Assist Your Company

Schenk & Bruetsch is prepared to advise you with respect to this change in the law to ensure your company is compliant and can assist with revising your company’s handbook and on-boarding documents. Since the law could still change before the effective date, this issue should be monitored closely to achieve timely compliance when the new law takes effect. Contact Partners Matthew Schenk at Matthew.Schenk@SBDetroit.com or (313) 492-5949, or Lindsey Johnson at Lindsey.Johnson@SBDetroit.com for more information.

Schenk & Bruetsch PLC is a premier boutique business law firm. Learn more at www.SBDetroit.com

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Client Alert - State’s Paid Sick Leave and Minimum Wage Acts Set to Take Effect on February 21st

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