While employers and others were digesting what the Michigan Supreme Court did to employers with its ruling on the Minimum Wage and Paid Medical Leave laws last week, talk has started to grow around a new law enacting Michigan Paid Family and Medical Leave that could pay employees up to fifteen (15) weeks of leave per year if they qualify for the benefit.

Unlike the federal Family and Medical Leave Act (FMLA) that protects an employee’s job while on qualified leave, the state family and medical leave law would also provide eligible employees compensation during the leaves. The idea of a paid family and medical leave law has been around for a while, and a number of other states have enacted such laws. Last year Governor Whitmer bumped up interest in the proposed paid leave in her State of the State address and has been championing this program ever since.

In doing so, and with little fanfare, she also had the Department of Labor and Economic Opportunity commission a study by insurance company Milliman on how this could be achieved. This report was delivered back to the State last week.

The study looked at paid family and medical leave that was outlined in bills introduced in Michigan’s Legislature last year. SB332 and 333 and HB4574 and 4575. So far those bills have not been taken up in legislative committee – the typical next step for legislative bills introduced for consideration.

The Milliman study reported that depending upon the paid leave programs proposed, the cost could be between $2.5 billion and $3.2 billion by 2035. Unlike the paid sick time off law that has the employer paying for it, Michigan’s proposed family and medical leave law would be paid for by taxing both the employer and the employee. The workers and their employers would each pay 0.47% and 0.37% of wages into the program respectively. This would be a new state run insurance program. The employer side of the tax would apply to employers over 25 employees in size. Employers under 25 employees would be exempt from the tax.

The family and medical leave program would provide paid time off for many of the leaves provided for by the federal FMLA law but for a lot more employers and employees.

Benefits proposed paid under the legislation would provide up to 90% of the average weekly wages with a maximum benefit of 67% of the state average weekly wage. Estimated to be about $840/week this year.

Currently there are at least 13 other states as well as the District of Columbia that have paid family and medical leave laws right now.

Source: Detroit Free Press. Paid Family, Medical Leave Advocates See Chance to Reinvigorate Discussion in Michigan (8/6/2024)