Tag: PA 338 of 2018

103rd Legislature Begins With Introduction of Earned Sick Time Bills

Member News

The Michigan Legislature officially commenced their 103rd session on Wednesday, Jan. 8, including the introduction of legislation to amend Michigan’s Earned Sick Time Act . The session brings a new partisan divide with the Senate remaining under Democratic control, while the House Majority now shifts to Republican control.

Both chambers introduced legislation amending Michigan’s Earned Sick Time Act. House Bill 4002, introduced by Rep. Jay DeBoyer (R-Clay), and Senate Bill (SB) 6, introduced by Sen. Kevin Hertel (D-Saint Clair Shores), make separate clarifications to the voter initiative petition on earned sick time that is scheduled to go into effect Feb. 21, 2025.

The Earned Sick Time Act, as enacted PA 338 of 2018, applies to all employers and requires that an employee be provided one (1) hour of earned sick time for every 30 hours worked. That sick time may carry over year-to-year and allows increased usage of paid earned sick time for an employee of up to 72 hours per year. The MHA joined in a coalition of other business, employer and healthcare groups to call for legislative clarifications to the Earned Sick Time Act. The MHA will advocate for swift action to clarify the earned sick time policy through this legislation.

Legislation was also reintroduced in the Senate to establish a Prescription Drug Affordability Board in Michigan. SBs 3-5, led by Sen. Darrin Camilleri (D-Brownstown Township), would create the Prescription Drug Advisory Board (PDAB) and stakeholder council. The PDAB is charged with and intended to review drug costs, assess cost impacts on consumers and ultimately create opportunities for reducing consumer expenditures on drugs through the creation of upper payment limits (UPLs).

If the PDAB were to institute a UPL on a drug based on a review of the drug’s increased cost and impact on consumer access, a purchaser or payer would be prohibited from purchasing, billing or reimbursing above the set UPL. The MHA is reviewing and monitoring the legislation.

Members with questions may contact Elizabeth Kutter at the MHA.

Michigan Supreme Court Issues Ruling on Paid Sick Leave & Minimum Wage

Member News

The Michigan Supreme Court issued a ruling July 31 in Mothering Justice v. Attorney General that upholds voter initiative petitions on paid sick leave and minimum wage. Those laws, as originally enacted, will go into effect Feb. 21, 2025.

As a practical result, hospital employers should be aware of forthcoming changes to sick leave and minimum hourly wages starting in February 2025. The Improved Workforce Opportunity Wage Act, as enacted Public Act (PA) 337 of 2018, increases the state minimum hourly wage annually until 2030 and applies to all employers, regardless of size. Current estimates place the minimum hourly wage at $12.25 per hour, starting in February 2025, and reaching $15 by 2030.

The Earned Sick Time Act, as enacted PA 338 of 2018, applies to all employers and requires that an employee be provided one (1) hour of earned sick time for every 30 hours worked. That sick time may carry over year to year and allows increased usage of paid earned sick time for an employee of up to 72 hours per year. In addition, employers will be required to update their displayed informational posters on earned sick time.

Members with questions should contact Nancy McKeague at the MHA. Members with questions about Michigan’s existing laws should contact Elizabeth Kutter at the MHA.