On January 26, 2023, the Michigan Court of Appeals reversed the Michigan Court of Claims and held the “adopt-and-amend” strategy the Michigan Legislature used in 2019 to enact minimum wage and paid sick time laws was not unconstitutional. According to the Michigan Court of Appeals, the Michigan Legislature may amend a voter-initiated law just as it may amend any other law. As a result, for the time being, employers may comply with the MPMLA and do not need to start complying with the ESTA effective February 20, 2023, unless a further appeal is filed, and the Michigan Supreme Court reverses the Michigan Court of Appeals or the Michigan Legislature passes new laws similar to the voter-initiated laws.
Tag: Paid Sick Leave
Paid Leave for Any Reason is Coming to Illinois
On January 10, 2023, the Illinois legislature passed a bill, SB0208, which would require most Illinois employers to provide employees with up to 40 hours of paid leave for any reason on an annual basis. The bill, entitled the “Paid Leave for All Workers Act,” if signed by the Governor (who has already expressed his support) would take effect on January 1, 2024. The bill is expansive in that it would require nearly all employers with one or more employees working in Illinois to provide paid leave. Leave would begin to accrue on January 1, 2024 or upon commencement of employment, whichever is later, but covered employers could impose a 90-day waiting period before leave may be used. With limited exceptions, all employees would be eligible to accrue leave, at a rate of one hour of paid leave for every 40 hours worked, up to 40 hours per 12-month period (e.g., calendar year). Exempt employees are assumed to have worked a 40-hour week unless their regular workweek is less than 40 hours.
Notably, the bill specifically provides that employers who already provide “any type of paid leave policy that satisfies the minimum amount of leave required by subsection (a) of Section 15” (i.e., 40 hours or a pro rata amount based on hours worked) are not required to modify the policy if employees are given the option, at their discretion, to take paid leave for any reason. Given this provision, employers may choose to modify their existing vacation, paid time off, or sick leave policies to satisfy this new leave requirement, rather than create a new leave bank for employees.
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Colorado’s Public Health Emergency Leave Now Covers COVID-19 and ‘Similar Respiratory Illnesses’
Colorado’s Healthy Families and Workplaces Act (the HFWA) requires employers provide up to two weeks of supplemental paid sick leave — often referred to as public health emergency leave (PHEL) — when a public health emergency is declared. As we previously described, this leave is awarded in addition to employees’ regular paid sick leave required by Colorado law. C.R.S. § 8-13.3-405. PHEL is provided per public health emergency and is to be used for reasons specifically connected to the public health emergency.
Update: Michigan Court Stays Decision to Reinstitute Higher Minimum Wage and More Generous Paid Sick Time Laws
Recently, we issued an alert explaining that, on July 19, 2022, the Michigan Court of Claims ruled that the “adopt-and-amend” strategy the Michigan Legislature used in 2019 to enact more business-friendly minimum wage and paid sick time laws was unconstitutional. The court also reinstituted the prior versions of these laws which meant Michigan employers were immediately subject to the more generous Earned Sick Time Act and the higher $12 per hour minimum wage for most employees.
However, on July 29, 2022, the same court issued a stay of its ruling through February 19, 2023 to allow employers and the relevant state agencies time to comply with and enforce the original, reinstituted laws. Accordingly, as of the writing of this alert, employers have until February 19, 2023 to comply with the Earned Sick Time Act (which requires more paid sick time than the now-stricken Michigan Paid Medical Leave Act) and provide at least a $12 per hour minimum wage for non-tipped employees, unless an appellate court or the Michigan Legislature acts before February 19.
Reforms to Puerto Rican Labor Law Reinstate Employee-Friendly Measures
On June 20, 2022, Puerto Rico’s governor signed into law Act No. 41-2022 (“the Act”). The Act rolls back certain changes brought about by the Labor Transformation and Flexibility Act (“LTFA”). The LTFA was enacted in 2017 in an effort to reenergize the island’s economy following its effective bankruptcy.
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State & Local Employment Law Developments: Q2 2022
Alabama
Leave Benefits for Adoption: Alabama’s Adoption Promotion Act (the Act) takes effect on July 1, 2022 and requires employers with 50 or more employees to provide eligible employees with up to 12 weeks of unpaid family leave for the birth or adoption of a child. The Act also mandates that employers who provide paid leave benefits and additional leave considerations for the birth of a child provide similar benefits for adoption.
Marketplace Contractors: Effective July 1, 2022, marketplace contractors are not considered employees under workers’ compensation and unemployment insurance laws (if certain conditions are met). Marketplace contractors are persons/entities who enter into agreements with marketplace platforms to be connected with third parties seeking services — such as drivers for Uber and Lyft.
Arizona
Expansion of Employer Definition under Sexual Harassment Discrimination: Arizona enacted a change to the sexual harassment provisions of existing employment discrimination law, so that the law applies to any employers or their agents who commit sexual harassment or retaliate against someone for reporting it.
Continue reading “State & Local Employment Law Developments: Q2 2022”