On December 14, 2018, Governor Rick Snyder signed bills significantly amending Michigan’s Earned Sick Time Act and Michigan’s Minimum Wage Law. The bills will become effective on March 28 or March 31, 2019, depending on when the current legislative session ends. To allow enough time to incorporate any necessary changes, employers in Michigan should review their employee compensation and paid time off policies now to ensure compliance with these new requirements.
Minimum Wage Increases
Under the new law, Michigan’s minimum wage will rise from $9.25 to $12.05 per hour by 2030. The minimum wage for tipped restaurant workers will rise to $4.58 by 2030.
Effective January 1, 2019, the new minimum wage will be $9.45 per hour for non-tipped workers. The minimum wage for tipped workers remains set at 38% of the regular minimum wage.
Paid Sick Time
The new law significantly changes the Earned Sick Time Act. Highlights of the amended Earned Sick Time Act are as follows: