Get an overview of the Michigan labor laws small businesses should know when hiring, and updates on employment laws that could impact your business.
Keep up to date with important changes to state and local employment laws in Michigan.
The Michigan Supreme Court has ruled that employers must adhere to the original versions of the 2018 voter-initiated laws on minimum wage, and paid sick leave, which were previously amended. Effective February 21, 2025, the minimum wage will incrementally increase and be adjusted for inflation annually.
Employers with 10 or more employees must provide up to 72 hours of paid sick leave annually, while those with fewer than 10 employees must offer up to 40 hours of paid leave, plus an additional 32 hours of unpaid leave. Employers should review and update their leave policies, ensure compliance with new accrual rates, and prepare for inflation-adjusted minimum wages to avoid penalties.
Governor Whitmer has passed a bill which expands the Elliot-Larsen Civil Rights Act (ELCRA) to include protected classes for sexual orientation and gender identity or expression. Unlike federal law under Title VII, this change outlines that discrimination claims can be filed without employees being required to exhaust their administrative remedies. Additionally, the bill will allow supervisors to be held personally liable for discrimination. Employers should review their current policies and ensure they comply with the new state protections.
Last month, Michigan passed a few laws regarding workplace exposure to COVID-19. Among other new requirements, employers are prohibited from taking adverse action against covered workers who do not report to work due to COVID-19 exposure, symptoms, or a positive test result. The law goes into effect immediately and is retroactive to March 1, 2020.
On May 17, 2023, Governor Whitmer signed a new law amending the state’s Elliott-Larsen Civil Rights Act (“ELCRA”) and expanded workplace protections against discrimination of employee’s right in their decision to have an abortion.
Prior to the amendment, protections were only offered if the abortion was to “save the life of the mother”, however, that qualification has been eliminated and protections are offered to anyone (regardless of sex) who elects to have an abortion for any medical or personal reasons.
Employers should review and revise their anti-discrimination policies to ensure they are updated to reflect the expanded law.
The Michigan Supreme Court recently ruled that the definition of sex, a protected trait under the state’s antidiscrimination statutes, includes sexual orientation and gender identity. This ruling expands protections to employees working for all employers, regardless of size.
After much back and forth in the Michigan Legislature, minimum wage in Michigan will increase to $9.45 on March 29.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.