Chris welcomes Anthony M. Dalimonte, Attorney Foster Swift Collins and Smith PC Attorneys Southfield, MI, 6 offices across Michigan

Watch Tony, and Chris discuss this Wednesday’s Seminar in the YouTube video shared below

I’m joined by Tony Dalimonte at Foster Swift. Mr. Dalimonte is here to plug Foster Swift’s Labor and Employment Seminar next week. Tell us a little bit about that.

· Our Labor and Employment practice group at Foster Swift is putting on our “Fall Update” virtual seminar on October 12th from 9 am-11:30 am. We will be discussing updates in the law on topics such as: the current status of FLSA, the new minimum wage developments, retention policies, compliance & regulation issues, workers’ compensation, and diversity, equity, and inclusion issues. One of the topics you mentioned, minimum wage, has a lot of recent developments and could really affect employers.

Can you tell us a little bit about what employers need to be concerned about?

· In July of this year, the Court of Claims held that the Improved Workforce Opportunity Wage Act and the Paid Medical Leave Act were void. As a result, Michigan’s minimum wage and paid sick leave laws are going to change dramatically.

When is this going to happen?

· The Court of Appeals recently issued a stay until February 20, 2023. It’s unclear whether the stay will be extended. As of right now, employers will be required to immediately comply with the ballot initiatives that were presented in 2018.

What are the big changes that employers will need to comply with?

· There are two substantial changes that employers will need to be ready to comply with: 1) Changes in minimum wage and 2) Changes in paid sick leave. o Minimum wage: The standard minimum wage will increase from its current $9.87 per hour to at least $12.00 per hour when the stay is lifted. Because the 2018 ballot initiative would have increased the standard minimum wage to $12.00 effective January 1, 2022, that amount may be increased when the stay is lifted due to an inflation-based provision in the initiative. o Paid Sick Leave: The current Paid Medical Leave Act is no more, and the ballot initiative – the Earned Sick Time Act will be in effect once the stay is lifted. The Earned Sick Time Act significantly expands who is required to provide paid sick leave. Now, all employers with at least one employee will be required to provide at least 40 hours of paid sick leave. “Large” employers with more than 10 employees will be required to provide at least 72 hours of sick leave.

Are there any other substantial changes?

· Yes, under the ballot initiative, the minimum wage rate for tipped employees is increased to 80% of the minimum wage in 2022, 90% in 2023, and 100% in 2024. This means that employers will be required to pay tipped employees an hourly rate of at least $9.60 per hour once the stay is lifted, and will need to be paying tipped employees the minimum wage in less than two years. · This has the potential to have substantial economic effects on our restaurants unless other legislative action is taken in the meantime.

How can employers get ready for these changes?

· Unless an additional stay is granted, these changes are going to go into effect immediately on February 20, 2023. That’s not that far away from now. Employers need to look at their books and be prepared to comply with the potential additional financial requirements as well as administrative requirements, and not bank on any legislative action or additional stay. · With regard to paid sick leave, employers will need to pay close attention to the additional requirements because employers can no longer request documentation from employees supporting the need for paid sick leave, and the statute actually gives employees a private right of action to bring a lawsuit for violations of the Earned Sick Time Act.

Register with your preferred office location to attend from (Lansing, Grand Rapids or Southfield). If you plan to attend virtually, please use the following link to register in advance: https://us06web.zoom.us/webinar/register/WN_X_V_qo4RRo2hEqa-kCRlGQ

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