Emerging Issue: Paid Family Medical Leave

The federal Family Medical Leave Act of 1993 allows certain covered employees up to 12 weeks of unpaid leave during a 12-month period for the birth or adoption of a child, health care of a family member, or under certain additional situations. Covered employees must have worked 1,250 hours during the preceding 12-month period and work for an employer with over 50 employees at a given point during the year. This leave is distinct from paid sick leave, which is electively provided by some employers for the employee them self. 

The creation of a state Family Medical Leave Act has been identified as a priority by Governor Gretchen Whitmer. Bills introduced in the Michigan House and Senate would create 15 weeks of mandatory paid family leave for employees. Importantly, this would apply to every employer in the state with no exceptions. These bills would currently dictate these 15 weeks of paid family leave at a rate 65% of the state’s average of weekly wage, currently close to $800 a week. They also provide the Michigan Department of Labor and Economic Opportunity broad authority in creating assessments on employers to fund this program. These bills would cost employers an estimated $1-2 billion annually. 

Thoughts to consider

• How can the state establish the over $1 billion fund needed to begin such a program?
• How should an ongoing state family medical leave act be paid for: by employers, by employees, or both?
• Should businesses of a certain size be exempted from such a program?
• How should a state family medical leave act address temporary and seasonal employers, like many farms and agricultural processors?
• What impact might this proposed law have on labor shortages?
• Would a voluntary opt-in program be a better option? Would this type of system be beneficial to farm employers?

Policy references

MFB Policy # 56 Wages and Compensation

Additional resources

House Bill 4574

House Bill 4575 

Senate Bill 332

Senate Bill 333

Michigan Chamber of Commerce Analysis