Paid Leave and Minimum Wage Changes: The Work Ahead and What Business Owners Can Do

During a virtual Town Hall with the Michigan Chamber of Commerce and Grand Rapids Chamber on Wednesday, Aug. 28, the Detroit Regional Chamber discussed compliance and legislative strategies to adjust the new Paid Leave and Minimum Wage changes before its February 2025 mandate.

Brad Williams, the Detroit Regional Chamber’s Vice President of Government Relations, explained a two-pronged strategy of compliance by helping Michigan businesses understand their obligations right now and legislative work to soften the impact of this adverse ruling.

The Chambers, along with a larger coalition of business organizations, are asking the legislature to make the following amendments to alleviate the current ruling’s complexities:

• Exempt plans that meet or exceed the mandated 72 hours.
• Exempt small businesses and certain workers (including part-time and seasonal employees).
• Require time to be used in full- and half-day increments and allow employers to require advanced notice.
• Eliminate private right of action and rebuttable presumption.
• Allow employers to frontload 72 hours at the start of the year.

“What made sense in 2018 doesn’t make as much sense now,” Williams said. “We’re not trying to overturn what the petitioners put before the legislature; we’re trying to help them implement it in a way that actually works.”

Time is of the essence as the election season kicks into high gear, which is soon followed by a lame-duck session. Therefore, business leaders must connect with their lawmakers right away – preferably in person or over the phone – to share why this ruling is problematic and ask for a common-sense solution before 2024 ends.

Williams and Josh Lunger, the Grand Rapids Chamber’s Vice President of Government Affairs, stressed that business owners do not need to be experts on the ruling itself; simply connecting with their Michigan House and Senate representatives and sharing personal anecdotes regarding this ruling makes a big difference.

“The requests are approachable [to the lawmakers]. The challenge is politics.” Lunger said. “But the more personal you make it, taking a few minutes out of your day … will stick in the brains of these lawmakers.”

The Detroit Regional Chamber is working proactively to give its members the most updated information and resources, including a platform where members can submit questions.

The Chamber’s Government Relations team is also working with other major Michigan business groups and legislative leaders to create amendments to these extreme rulings. Chamber members have the added benefit of receiving advice and help on reaching out to legislative leaders from the Chamber’s Government Relations team.

The Chamber will continue to update and provide resources for members on this critical issue.

Related: Dykema on Paid Leave and Minimum Wage Changes: ‘Be Prepared’