2018 Senate Bill 1175 / Public Act 369

Initiated paid leave law 're-do'

Introduced in the Senate

Nov. 8, 2018

Introduced by Sen. Mike Shirkey (R-16)

To remove an employer liability provision of the 2018 <a href="https://www.michiganvotes.org/2018-LIP-3">initiated law</a> that imposed a mandate on employers to grant employees one hour of paid leave for every 30 hours worked, up to a total of 40 hours annually for small businesses, and 72 hours annually for larger employers. The targeted provisions impose extensive record keeping requirements on employers, and potentially create a legal presumption that missing records means an employer has violated the law. The initiated law was enacted by the legislature in September of 2018 and is now Public Act 338 of 2018. The bill would not affect its other provisions.

Referred to the Committee on Government Operations

Nov. 28, 2018

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Passed in the Senate 26 to 11 (details)

To revise an <a href="https://www.michiganvotes.org/2018-LIP-3">initiated law</a> enacted in Sept. 2018, which imposed an employee paid leave mandate on employers. The original version of this law was brought to the legislature by a petition drive, and would have granted workers one hour of paid leave for every 30 hours worked, up to a maximum of 72 hours a year. The revised version mandates one hour of leave for every 40 hours worked, with an annual paid leave cap of 36 hours. Firms with 50 or less workers would be exempt. It also removes provisions that would have imposed extensive record keeping requirements on employers, and potentially created a legal presumption that missing records means an employer has violated the law. Note: Had the legislature not passed the initiated law in September it would have gone on the November ballot, and if voters had approved the measure any changes would have required a 3/4 supermajority vote in the House and Senate.

Received in the House

Nov. 28, 2018

Referred to the Committee on Michigan Competitiveness

Dec. 4, 2018

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Amendment offered by Rep. Erika Geiss (D-12)

To adopt the language of the original initiated legislation placed before the legislature by petition (see <a href="https://www.michiganvotes.org/2018-LIP-3">2018 Legislative Initiative Petition 3</a>).

The amendment failed by voice vote

Amendment offered by Rep. Tim Kelly (R-94)

To adopt a version of the bill that slightly increases the number of paid leave hours an employee can earn each year (from 36 to 40), slightly increases the hours of leave earned per hour of work (from one hour of leave for every 40 hours to one hour for every 35 hours), and reduced the "vesting" time before new employees become eligible to take paid leave (from one year to three months).

The amendment passed by voice vote

Passed in the House 60 to 48 (details)

To revise an <a href="https://www.michiganvotes.org/2018-LIP-3">initiated law</a> enacted in Sept. 2018, which imposed an employee paid leave mandate on employers. The original version of this law was brought to the legislature by a petition drive, and would have granted workers one hour of paid leave for every 30 hours worked, up to a maximum of 72 hours a year. The revised version mandates one hour of leave for every 35 hours worked, with an annual paid leave cap of 40 hours. Firms with 50 or less workers would be exempt. It also removes provisions that would have imposed extensive record keeping requirements on employers, and potentially created a legal presumption that missing records means an employer has violated the law. Note: Had the legislature not passed the initiated law in September it would have gone on the November ballot, and if voters had approved the measure any changes would have required a 3/4 supermajority vote in the House and Senate.

Received in the Senate

Dec. 4, 2018

Passed in the Senate 26 to 12 (details)

To concur with the House-passed version of the bill.

Signed by Gov. Rick Snyder

Dec. 13, 2018