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Michigan Farm Bureau Family of Companies

Wages and Compensation #53

Although most farm employees are paid above the minimum wage level, it does serve as a floor for wage rates. The state minimum wage and piecework rates should not exceed the federal minimum wage.

We support:

  • An agricultural exemption from paid sick leave requirements.
  • Agriculture, as defined in the North American Industry Classification System (NAICS 11), remaining exempt from overtime wage payments.
  • Piece rates as a method of payment to allow for the variable situations found in agricultural employment. Piecework rates enable skilled agricultural workers to earn income above the average and/or minimum hourly wage.
  • The Michigan Department of Labor and Economic Opportunity (MDLEO) working with the agriculture community to support the payment of piece rate in compliance with state and federal law.
  • Minimum wage increases being tied directly to increases of all wage-based employer thresholds, such as unemployment compensation insurance, frequency of withholdings, and frequency of deposits.
  • Investigating a state surveying mechanism and auditing of the survey for calculating ag wages including adverse effect wage rate (AEWR).
  • Unemployment payments should never exceed 80% of previous full pay and should not exceed 20 weeks.
  • Fair market value for employer provided housing should apply toward fulfillment of minimum wage and AEWR requirements.
  • An evaluation of the current Unemployment Insurance Agency to make it user-friendly and accurate.
  • The Registration and Seeking Work Waiver be extended from a 45-day to a 120-day waiver for agriculture and seasonal agriculture-related businesses.

Economic development initiatives are important to the future of Michigan agriculture. We oppose any attempts to mandate union wage scales in economic development projects involving agriculture.

We oppose Workers’ Compensation rules that mandate fringe benefits be included in the base-rate premium, including housing and health insurance. We support the continued full liability coverage for employers who exercise due diligence in employee verification.

We oppose local units of government setting a minimum wage rate.

We oppose the concept of predictive scheduling of employees due to the unpredictable nature of agriculture and agriculture related businesses.

We oppose additional tax on payroll wages for health care.

More farms have added roadside markets and agritourism venues to their business. We believe MDLEO should view all workers used for roadside markets and agritourism venues to be considered agriculture employees. We encourage Michigan Farm Bureau to work with MDLEO to develop and improve agriculture classification codes. 

We strongly oppose the Improved Workforce Opportunity Wage Act (PA 337 of ’18) and the Earned Sick Time Act (PA 338 of ’18). We urge the adoption of reforms similar to PA 369 of ’18, restrictions to the policy applying only to employers with more than 50 employees, or outright repeal of the two acts.

We oppose legislation to give the Michigan Department of Licensing and Regulatory Affairs full control of youth labor in Michigan. Even the exemption for on-farm children is not enough as the new policy would be detrimental to feed mills, landscapers, and other ag-connected industries.

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