Ask the Experts: Requirements for Paying Medical Leave
By: Mark Burzych | Fahey, Schultz, Burzych, Rhodes
Q: I have employees who have been out an extended amount of time due to illness. Am I required to pay them while they are on medical leave?
A: Under Federal law, no, but you may be required to do so under Michigan law. Currently, the Paid Medical Leave Act (PMLA) requires employers with 50 or more individuals that work in the United States, regardless of number of hours worked or their full or part-time status, to provide paid medical leave to each of the employer’s eligible employees. An employee will be deemed eligible if they are non-exempt under the PMLA (generally, an employee who worked less than 25 hours a week is exempt) and are engaged in service to that employer for the employer’s business and if the employer is required to withhold federal income for tax purposes. The PMLA has 12 employee exemptions, but the most notable are employees who have worked less than 25 hours per week or overtime exempt employees.
If the employer and the employee meet the requirements of the PMLA, you will be required to pay the employee paid medical leave at an accrued rate of one hour for every 35 hours worked. The paid medical leave must be paid at a pay rate equal to the greater of the employee’s regular pay rate or the Michigan minimum wage rate. However, employers are not required to allow an employee to accrue more than one hour of paid medical leave in a calendar week or more than 40 hours of paid medical leave in a single year. Growing employers should monitor the requirements under the PMLA to ensure they are in compliance. Violations of the PMLA include a $1,000 administrative fine and $100 fines for each separate willful violations.
Every employer throughout Michigan should continue to monitor the legislation and case law surrounding paid sick leave as well. While much attention has focused on the tipped minimum wage in the recent court battles, paid sick leave was also part of that litigation. You are aware, I am sure, that the Court of Appeals reversed the Court of Claims decision and held that the Legislature’s “adopt and amend” strategy with the 2018 ballot proposals was constitutional in a unanimous 3-0 decision.
The Court of Appeals’ decision was appealed to the Michigan Supreme Court. If the Supreme Court were to reverse the Court of Appeals’s decision, the ESTA and IWOWA could potentially go into effect, and the ESTA could replace the PMLA, which would be highly burdensome on all employers in Michigan.
We will continue to keep you updated on the status of this legislation and case law. If you have any questions about the PMLA, ESTA, IWOWA, or paid medical leave in general, please contact your employment lawyer. Failing to do so could result in potential fines and other liability.
A: Under Federal law, no, but you may be required to do so under Michigan law. Currently, the Paid Medical Leave Act (PMLA) requires employers with 50 or more individuals that work in the United States, regardless of number of hours worked or their full or part-time status, to provide paid medical leave to each of the employer’s eligible employees. An employee will be deemed eligible if they are non-exempt under the PMLA (generally, an employee who worked less than 25 hours a week is exempt) and are engaged in service to that employer for the employer’s business and if the employer is required to withhold federal income for tax purposes. The PMLA has 12 employee exemptions, but the most notable are employees who have worked less than 25 hours per week or overtime exempt employees.
If the employer and the employee meet the requirements of the PMLA, you will be required to pay the employee paid medical leave at an accrued rate of one hour for every 35 hours worked. The paid medical leave must be paid at a pay rate equal to the greater of the employee’s regular pay rate or the Michigan minimum wage rate. However, employers are not required to allow an employee to accrue more than one hour of paid medical leave in a calendar week or more than 40 hours of paid medical leave in a single year. Growing employers should monitor the requirements under the PMLA to ensure they are in compliance. Violations of the PMLA include a $1,000 administrative fine and $100 fines for each separate willful violations.
Every employer throughout Michigan should continue to monitor the legislation and case law surrounding paid sick leave as well. While much attention has focused on the tipped minimum wage in the recent court battles, paid sick leave was also part of that litigation. You are aware, I am sure, that the Court of Appeals reversed the Court of Claims decision and held that the Legislature’s “adopt and amend” strategy with the 2018 ballot proposals was constitutional in a unanimous 3-0 decision.
The Court of Appeals’ decision was appealed to the Michigan Supreme Court. If the Supreme Court were to reverse the Court of Appeals’s decision, the ESTA and IWOWA could potentially go into effect, and the ESTA could replace the PMLA, which would be highly burdensome on all employers in Michigan.
We will continue to keep you updated on the status of this legislation and case law. If you have any questions about the PMLA, ESTA, IWOWA, or paid medical leave in general, please contact your employment lawyer. Failing to do so could result in potential fines and other liability.
