Upcoming legislative work could include changes to ballot measure on wages, sick time

This fall, the Michigan Legislature may revisit the Earned Sick Time Act in light of a recent Michigan Supreme Court ruling. The court’s decision reinstated the original 2018 ballot language for the act, which had been significantly amended by the Legislature after its adoption.

With this ruling, legislators now have the chance to revisit and refine the act, offering clarifications and potential adjustments that could address concerns from both employers and labor organizations.

As of now, no specific bills have been introduced, but many expect that legislative proposals will emerge in the coming months. Any amendments could include updates to requirements for paid sick leave, coverage for part-time and seasonal workers, or changes in how employers manage and implement these provisions.

MAC has yet to take an official stance on the potential changes. MAC plans to review any new bill language carefully before determining to support the proposed amendments. MAC is closely monitoring developments and will engage with its membership and stakeholders to assess the impact of the forthcoming legislation.

A legal analysis of the ballot measures was obtained by MAC and notes:

“While most counties currently have wage rates that exceed these levels for their regular full-time employees, these changes could impact a number of county part-time, temporary and /or seasonal positions.

“The ESTA mandates that all employees (full-time, part-time, temporary, and seasonal) accrue sick time at a rate of 1 hour for every 30 hours worked. Employees accrue up to 72 hours (unless employer selects a higher limit) of paid sick time in a year. Employees of “small businesses” (employers with fewer than 10 employees) accrue up to 40 hours of paid sick time and 32 hours of unpaid sick time each year. In either instance, employees carry over any unused sick time from year to year. However, employees cannot use more than 72 hours (paid or unpaid) per year.”

To read the complete legal analysis, click here.

For more information on legislative work on this issue, contact Deena Bosworth at bosworth@micounties.org.

 

*This post was updated on Oct. 24, 2024.

By Matt Nordfjord, Principal, firm of Cohl, Stoker & Toskey

The Michigan Supreme Court recently issued a long-awaited opinion in Mothering Justice v. Attorney General, restoring the 2018 voter-initiated provisions from the Improved Workforce Opportunity Wage Act (“IWOWA”) and the Earned Sick Time Act (“ESTA”).

The voter-initiated IWOWA set the general minimum wage at $12.00/hr. for 2022 with annual increases to the minimum wage every year thereafter based upon inflation as calculated by the State Treasury Department. The legislature in 2018 amended that law to provide lesser increases (to $10.56/hr. for 2024 & $10.80/hr. for 2025) until it reached a maximum of $12.05 in 2030. The Michigan Supreme Court held that this amendment was unconstitutional and the original provisions needed to be reinstated via a phased in process starting Feb. 21, 2025. The court called for the reinstatement of the original increases listed in the IWOWA ($0.65/hr. each year), plus each year’s inflation factors.

On Oct. 1, 2024, the state confirmed the schedule and amount that Michigan’s Minimum Wage will increase in 2025. The first increase will occur on January 1, 2025, following the rate increase schedule from $10.33/hr. to $10.56/hr. The second increase will occur on Feb. 21, 2025, consistent with the Mothering Justice decision of the Michigan Supreme Court, from $10.56/hr. to $12.48/hr., and will thereafter continue to increase by an annual inflation factor (link to the schedule provided by the state: https://www.michigan.gov/leo/news/2024/10/01/michigan-minimum-wage-rate-2025-increase-schedule).

Although many counties currently have wage rates that exceed these levels for their regular full-time employees, these changes could impact a number of county part-time, temporary and /or seasonal positions.

The ESTA mandates that all employees (full-time, part-time, temporary, and seasonal) accrue sick time at a rate of 1 hour for every 30 hours worked. Employees accrue up to 72 hours (unless employer selects a higher limit) of paid sick time in a year. Employees of “small businesses” (employers with fewer than 10 employees) accrue up to 40 hours of paid sick time and 32 hours of unpaid sick time each year. In either instance, employees carry over any unused sick time from year to year. However, employees cannot use more than 72 hours (paid or unpaid) per year.

The ESTA also expands on an employee’s rights to use sick time. It can be used for a variety of absences including illness/injuries (to care for themselves and family members), in connection with domestic violence or sexual assault and for certain business and school closures. Further, the ESTA prohibits an employer from imposing requirements that an employee provide documentation, including doctor’s notes, to support a leave request unless the absence was for more than three days. Employers are also prohibited from “front-loading” paid sick leave. Employers must allow employees to accrue paid sick leave as they work.

With the reimplementation of the IWOWA and ESTA, effective Feb. 21, 2025, counties and any other Michigan public and private employers should examine their current leave policies and make any necessary modifications needed to comply with the IWOWA and ESTA. To ensure compliance, employers should review:

• Is the company/government a covered employer: the ESTA applies to all Michigan employers with at least one employee, except the federal government.
• What types of employees are eligible for paid sick leave: the ESTA applies to full-time, part-time, temporary and seasonal employees.
• How does sick leave accrue: employees must accrue paid sick leave as they work.
• How many paid sick days may be used each year: employees can accrue and use up to 72 hours of paid sick leave a year.
• What types of absences are covered by the sick leave policies: the ESTA expands the reasons an employee may utilize paid sick leave.
• Are all employees, including part-time, temporary, and /or seasonal positions at wage levels that meet or exceed the minimum wage level as annually adjusted.

The ESTA requires employers to provide written notice to employees of certain of its provisions, including the employee’s right to file a complaint with a court or the Michigan Department of Licensing and Regulatory Affairs. There is a three-year statute of limitations and no requirement that an employee file a complaint with the department before proceeding to court. A violation of the Act could entitle the employee to reinstatement, back wages, liquidated (double) damages, costs, and attorneys’ fees.

The ESTA prohibits employers from retaliating against employees who exercise any right protected by the ESTA. Further, the ESTA creates a rebuttable presumption of a violation of the Act if an adverse action is taken against an employee within ninety days of the employee’s filing a complaint, cooperating with an investigation and/or informing on violations of the Act, opposing a policy prohibited by the Act or advising anyone of their rights under the Act.

Draft platforms for 2024-2025 are now available on our website for your review. These platforms, which were approved by the MAC Board in early August after months of careful consideration and amendments, will guide our legislative efforts and policy positions at the state level.

NOTE: To access this webpage, you will need your county’s MAC credentials, which you can get from your county administrator’s office or by contacting MAC at melot@micounties.org or despins@micounties.org.

The platforms were developed through the diligent work of our internal committees, who reviewed the platforms from previous years and made necessary amendments to reflect current needs and priorities. Our internal committees — Health and Human Services, Judiciary and Public Safety, Transportation and Infrastructure, Finance and General Government, Environmental and Regulatory Affairs and Agriculture and Tourism — have played a crucial role in shaping these documents.

These platforms are critical in helping MAC staff respond to legislative developments and advocate for the interests of counties across Michigan.

Amendment process

MAC’s By-laws (Article III) state:

“Section 6 Platform. A member wishing to submit an amendment to the MAC Platform shall submit the amendment to MAC at least five (5) days prior to the opening day of the MAC Annual Conference. Such amendment will require a majority vote at the annual meeting to be adopted.

“An amendment to the MAC Platform may be presented from the floor during the annual meeting. Such amendment will require a 2/3 majority vote of the members at the meeting at which a quorum is initially established to be adopted.”

To meet the submission deadline, the text of an amendment must be sent to despins@micounties.org by 5 p.m. on Sept. 17.

The final vote on the platforms will take place during our Annual Business Meeting on Thursday, Sept. 26. Your participation in this process is essential, and we look forward to your input and involvement.

For more information, contact Governmental Affairs Director Deena Bosworth at bosworth@micounties.org.

Michigan counties now can see estimates for their fiscal year 2025 revenue sharing payments via projections recently released by the Michigan Department of Treasury.

These projections offer an insight into how the new distribution model of the $291 million in county revenue sharing will affect each county.  

The changes to the distribution methodology are the result of the changes made to the state’s FY25 enacted budget. For years, county revenue sharing was based on an outdated model that was rooted in values from, among other things, a 1975 inventory tax, inflationary increases for those counties still drawing down from a reserve fund and random percentage increases and decreases decided on by the legislature and the administration. The old methodology also required counties to earn a portion of their revenue sharing with reports at the local level and state level. 

The new methodology has its roots in previous distributions, but the unprecedented $30 million increase for county revenue sharing this year will be distributed based on a county’s taxable value, as compared with the rest of the state. To be clear, all counties will see an increase in revenue sharing for FY25, compared to previous years. However, the actual impact on each county’s budget from the $30 million increase will vary depending on the final 2024 taxable values.

The new projections are based on the taxable values from 2023, which have been used as the foundation for estimating the amount each county will receive. However, it’s important to note that the actual payments to counties will be calculated based on the 2024 taxable values, which are expected to be released later in September. This means that the figures currently provided are preliminary and subject to change once the updated taxable values are available.

The Department of Treasury is expected to notify counties of the final revenue sharing amounts during the week of Sept. 2, but they will only be projections until the 2024 taxable values are finalized.

The FY25 projections provide a valuable early look at the funding counties can expect in the coming fiscal year. While the final amounts will depend on the forthcoming 2024 taxable values, these projections serve as an early indication on what counties can expect to receive.  For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.