Paid Sick Leave Ballot Proposal: What Employers Need to Know
Paid Sick Leave Ballot Proposal:
What Employers Need to Know
Paid Sick Leave Citizens Initiative• The “Time to Care Coalition”
announced July 30 that it was launching a statewide petition drive on Paid Sick Leave– Goal: November 2016 ballot– If approved, Michigan would be one of
only five states with a mandate (CT, CA, MA, OR)
Supporters
• Supported by the same groups that supported the minimum wage petition drive – Raise MI, Mothering Justice, SEIU, Economic
Justice Alliance of MI, others
• Comes on heels of State of the Union address– Obama urges Congress, states to tackle
• Similar to federal E.O. – Expands requirements to federal contractors
ProcessJuly 13, 2015
Submit
Proposal to Board
of Canvasser
s
July 30,
2015 Petition approved to form,
triggering the collecti
on gatheri
ng phase
Aug 2015-May
2016 180-day window
to collect 252,523
valid signature
s
June 1,
2016 Filing
Deadline for any
Initiated Law
petitions
June-July 2016
Board of
Canvassers meets to certify (or deny) petitions for Nov. General Election
July-Aug 2016
If certified, Legislature has 40 days to adopt,
reject or provide
competing
alternative
Nov. 8, 2016
General Election
Time Off• If 10+ employees: 1 hour of paid sick
leave for every 30 hours worked– Employee can use 72 hours in a year– Employer may select a higher limit– Time would begin to accrue on 4/1/17– All employees are counted (full-time, part-
time, temp workers)– For employees hired after 4/1/17, employer
may require the employee to wait 90 calendar days to use leave time
Time Off• If less than 10 employees: 1 hour of
paid sick leave for every 30 hours worked– Employees can use 40 hours in a year– If employee uses more than 40 hours,
employee is entitled to use an additional 32 hours of unpaid sick leave
– Employer may select a higher limit– All employees are counted (full-time, part-time,
temp workers)• Lose status if maintain more than 10 employees on
payroll during 20+ calendar weeks/year
Carryover• Carryover – Employees may carry over
sick leave from year to year—but employer can limit to the prescribed limits– Employer determines how a “year” is
calculated
Use of Time
• Time may be used in the “smaller of hourly increments” or the “smallest increment that the employer’s payroll system uses to account for absences or use of other time”Depending on payroll system, time could
be used in 10th of an hour (6 min) increments
Paid Time Off (PTO)
• Paid Sick and Vacation Time – Businesses will be in compliance if they provide any paid leave that may be used for the same purposes and under the same conditions as required under the proposed act, so long as it accrues in total at a rate equal to or greater than the rate described
Language appears to allow one bank of paid time off (PTO)—but compliance will be an issue
Use of Time• Acceptable uses for paid sick leave– Employee or family member’s mental/physical
illness, injury, health condition, medical diagnosis, care/treatment
– Issues related to domestic violence/sexual assault
– Meetings at a child’s school or place of care related to child’s health or disability
– Closure of employee’s place of business or child’s school or place of care because of a public health emergency
Allowable uses are broader than FMLA
Use of Time
• Language goes further than many employers’ policies, specifying that leave time can be used for family members, including any “individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship”“Equivalent” concept removes any
objective standard
Notification• Advanced Notice – Employers cannot
require unless the time off is “foreseeable”– Must give notice of the intention to use time off
“as soon as practicable” – Does not allow an employer to require the
employee to search for/secure a replacementLanguage does not allow employees to
meet employer call-in procedures in FMLAEmployees will be able to use time with no
notice
Documentation
• Doctor’s Note – Employers cannot require until the employee has taken 3 consecutive days off– Employer must pay “all out-of-pocket expenses
the employee incurs in obtaining the documentation”
– No insurance = employer foots the entire bill– Can’t ask for detailed statement from the
doctor
Doctor’s note is meaningless Language ignores precertification
procedures in FMLA
Litigation
• Judicial/Administrative Actions– Employer absence policies shall not treat paid
sick leave as “an absence that may lead to or result in retaliatory personnel action”
– Rebuttable presumption for adverse personnel actions
Rebuttable presumption is unprecedented
Litigation• Allows for civil actions for relief:– Payment of sick time– Rehiring/reinstatement to previous job– Payment of back wages– Reestablishment of benefits– Liquidated damages with costs and reasonable
attorneys fees– Civil fines of up to $1,000 for violations ($100 if
fail to notify employees of rights/display poster)
• Can also file a complaint with the state
MI Proposal vs. Other States
Michigan’s Initiative
California Connecticut Mass. Oregon
Enacted April 1, 2017 January 1, 2015
January 1, 2012
July 1, 2015 January 1, 2016
RatioEarned:Worked
1:30
1:30 1:40 1:30 1:30
Eligibility Timeline
90 days after
employment
Accrue after 30 days, use
after 90 days
Must work 680 hours for same employer
90 days after
employment
90 days
Small Employer Threshold
< 10 Employees (including
any independent
ly contracted employees)
No distinction
made
< 50 Employees
< 10 Employees
< 7Employees
MI Proposal vs. Other States, cont’d Michigan
InitiativeCalifornia Connecticut Massachuset
tsOregon
Cap on Annual Usage
72 Hours 24 Hours 40 Hours 40 Hours 40 Hours
Carryover Yes, no hard cap on
cumulative hours
accrued.
Employer decision.
Carry over, but hard cap at 48 hours.
Yes, but hard cap at 40 hours.
Yes, but hard cap at 40
hours.
Yes, but hard cap at 40 hours.
Paid vs. Unpaidfor Small Employers
Sm. employers provide up to 32 hours unpaid time
after 40 hours paid
time is used.
No distinction
made.
Small employers under 50
employees are exempt from any
requirements.
Small employers
only required to provide 40 hours of
unpaid leave time.
Small employers
only required to provide 40 hours of
unpaid leave time.
Tough to Beat
• Proponents’ polls suggest support in the 80% range– Polls better than minimum wage– Call it “earned sick time” versus “paid
sick leave” for a reason– Passed by Mass. voters in 2014 by 60%– National issue intended to drive/take
advantage of turnout in a presidential year
– Will proponents have sufficient funds to get this passed?
Our Position• MI Chamber opposes the ballot
proposal– Likely to be many ballot issues we oppose
in 2016– Like 2012, may coordinate a
comprehensive “NO” campaign
• Looking for members who are willing to engage in campaign activities, talk to the news media, etc.
Questions?
Wendy BlockDirector, Health Policy and Human
ResourcesMI Chamber of Commerce
517/371-7678 (direct)[email protected]