December 2018 Vol 72, Number 12
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Also Inside SpartanNash Buys Martin’s Super Markets, page 7 Nino Salvaggio Opens Fourth Location, page 7 Bills Introduced to Improve Recycling, Repeal Bottle Deposit Law, page 8 Meet Michigan’s New Legislative Leaders, page 9
Legislature Makes Minimum Wage, Paid Leave Mandates Palatable, Governor Signs Bills
MRA applauds the Legislature and Governor for taking action on Senate Bills 1171 and 1175 to make reasonable adjustments to otherwise unworkable policies. The bills, signed into law as Public Acts 368-369 of 2018, make adjustments to the increased minimum wage rate and paid medical leave benefit proposals adopted earlier this year. Recall that the Legislature adopted the proposals to keep them off the November general election ballot. SB 1171 revises Michigan’s minimum wage law to increase it to $12 over 12 years ($9.45 by 2019, then increase 23-cents per year until it reaches $12.05 by 2030). The state’s current minimum wage is $9.25. The bill also removes the (current) inflationary increase each year after $12.05 is reached. SB 1175 modifies the paid leave act to reflect the federal Family Medical Leave Act definitions which only covers employers with more than 50 employees and reduces the number of hours earned from 1 hour for every 30 hours of work to 1 hour earned per 35 hours. It also reduces the minimum number hours of earned time that employers must allow employees from 72 to 40 hours. Finally, seasonal workers, part time workers, and variable hour workers would not be covered by the requirement. While Michigan will be the only Midwest state with a mandated medical leave law, these changes bring the law in line with the 10 other states that also have medical leave laws. The revised law is still more generous than California’s law. These policies take effect in late March 2019. MRA does not recommend that employers make changes to employee policies before that time. 9
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