The Paid Medical Leave Act takes effect March 29, 2019. If you have not reviewed the impact to you, now is the time to take action.
In a historic lame duck session in December 2018, Michigan lawmakers voted on over 300 bills in approximately 13 days. Several of these legislative changes impact our clients and their businesses or interactions. You may also be aware that one such legislative change signed by Governor Snyder was the Paid Medical Leave Act, 2018 Public Act 338, as amended by 2018 Public Act 369, (“PMLA”). The PMLA requires certain employers to provide eligible employees with paid medical leave, and I am writing to bring the PMLA’s highlights to your attention as you begin your preparations before it takes effect March 29, 2019.
The PMLA applies to several types of employers, including private businesses, nonprofit agencies, educational institutions, townships, cities, and other government entities that employ 50 or more individuals. The PMLA does not apply to employers that employ fewer than 50 individuals.
Not every employee is eligible for paid medical leave under the PMLA. For example, executive, administrative, and professional employees who are exempt from overtime requirements under Fair Labor Standards Act are likewise not eligible employees under the PMLA. Moreover, employees who worked on average fewer than 25 hours per week during the preceding calendar year are not eligible employees under the PMLA. Similarly, temporary employees who are employed for 25 weeks or fewer in a calendar year are not eligible employees under the PMLA.
The PMLA provides employers with two options to provide its eligible employees with paid medical leave. The first option is to have eligible employees accrue one hour of paid medical leave for every 35 hours worked. The second option is to provide 40 hours of paid medical leave at the beginning of the benefit year.
The PMLA contains two provisions worth highlighting because they are helpful for employers. First, the PMLA states that the act does not override the terms of any collective bargaining agreement in effect prior to March 29, 2019. Second, the PMLA contains a rebuttable presumption that an employer is in compliance with the act if the employer provides at least 40 hours of vacation days, personal days, and other paid time off. Because the PMLA is a new law, no court has had the opportunity to interpret the rebuttable presumption section.
The last item worth acknowledging is the PMLA’s notice requirements. If an employer employs 50 or more individuals, it is required to display a poster in a conspicuous place that is accessible to eligible employees. The poster is created by the Michigan Department of Licensing and Regulatory Affairs. You can find it at this website.
Although this does not address every legal issue created by the PMLA, or its specific application to your place of employment, I hope it serves as a reference point. If you have any questions about the PMLA, or how it applies to you, please provide your contact information. I am happy to help and to serve.
Note: This posting is designed to provide accurate information in regard to the subject matter covered. It is provided with the understanding that it is not rendering legal advice or services.
