Legislation is pending in the Michigan House and Senate to make Michigan the 8th state to require employers of all sizes and types to provide paid sick leave to their employees. There are also efforts underway to put this issue on the November 2018 general election ballot.
While proponents have portrayed the mandate as all gain, no pain, a careful look at the fine print details tells a different story.
If adopted, employers would be required to provide one hour of paid leave for every 30 hours worked. Most employees would be able to use 72 hours of paid leave in a given year. Employees working for businesses with less than 10 employees would be able to use 40 hours of paid leave and 32 hours of unpaid leave in a year.
This proposal would have an impact on all employers--even those offering paid leave time today. For example, the proposal limits the ability of employers to require advanced notice and to implement call-in procedures; limits the ability of employers to require a doctor’s visit and note; allows leave time to be used in as little as seven-minute increments; and opens employers to employment-related litigation, fines and damages.
This proposal is the most punitive and aggressive proposal to be pursued in any state to date, especially as it relates to the small employer definition and lack of carve-outs.
Where We Stand:
The Michigan Chamber opposes this one-size-fits-all paid leave mandate. This proposal would have a significant impact on Michigan employers’ payroll costs and hiring decisions.
While these proposals are well-intended, studies consistently show paid sick leave mandates increase costs for employers and consumers and reduce hours and benefits for workers and hit the poor and unemployed the hardest.
No other midwestern state has adopted a paid sick leave mandate. If enacted, this law will make Michigan an outlier in the Midwest and jeopardize our state’s competitiveness.
- Labor Demand Boosts Paid Time Off Benefits, Society for Human Resource Management (SHRM)
- US Department of Labor Numbers on Employers Offering Paid Leave Benefits Today, 2017
- The Labor Market Impacts of Paid Sick Leave - Employment Policies Institute, 2017
- Learning from experience on paid sick leave - Employment Policies Institute, 2017
- The Effect of Mandatory Paid Sick Leave Policies - Freedom Foundation
- Democrats seeking paid sick leave for Michigan workers, MLive.com, March 1, 2017
- Michigan Democrats Introduce Paid Sick Leave Legislation, US News & World Report, March 1, 2017