labor lawAdivision of labor law center

Michigan seems poised to pass a smoking ban that would affect almost all employers, including restaurants and bars, in the next legislative session. Both the state house and senate passed bills protecting employees from second-hand smoke in the workplace in 2008. However, the two bills had significant differences and the legislature was unable to resolve those differences before they adjourned for the summer in late May.

Bills to ban smoking in restaurants and bars were introduced in 2007 in both the Michigan House and Senate. In each case, the bills generated a lot of debate and were sent into the 2008 legislative session.

In the spring of 2008, (more…)

Five states increased their minimum wages effective July 1, 2008. They include: Illinois, Michigan, West Virginia, Kentucky and Nevada.

In Illinois, the state minimum wage increased 25 cents from $7.50 to $7.75 per hour. This is the second step in a 3-tiered increase. The state minimum wage will increase again in 2009. The law applies to any employer with 4 or more workers who are not family members.  More details here.

Michigan’s minimum wage also increased 25 cents per hour from $7.15 to $7.40.  The state minimum wage has risen nearly $2.00 since 2005, despite sluggish job growth, problems for the automotive industry and the loss of a number of major employers. The law applies to employers with 2 or more workers. More details here.

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On July 1, 2008, the Michigan minimum wage will be increased by 25 cents, from $7.15 per hour to $7.40 per hour.

All overtime and minimum wage laws are enforced by Michigan Wage and Hour Division of the Department of Labor and Economic Growth. The state minimum wage in has risen nearly two dollars since 2005, despite relatively high unemployment.

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Employers in Michigan will soon have an infusion of highly-skilled workers thanks to more than $5.8 million in worker training grants to 2 community colleges and a city development agency.

The Detroit Workforce Development Department will use a grant of $1,850,000 to train workers in the hospitality and retail industries.

A grant of $2 million goes to the St. Clair County Community College to train workers in transportation, distribution and logistics. The school is located in Port Huron, a small city on the US/Canada border that features the Blue Water Bridge.

An Auburn Hills community college is the third winner. Workers for the nanotechnology industry will train at Oakland Community College under a $1,960,497 grant. The school in southeast Michigan is best known for its participation in the Michigan No Worker Left Behind program of job training for the unemployed.

The President’s Community Based Job Training Grants Initiative awards grants to community colleges and training facilities to help workers compete for jobs in high-growth industries. The program was established in 2005 and awarded grants to 72 institutions. In 2006, the second round awarded 70 grants.

In 2008, according to a recent announcement by the U. S. Department of Labor , 69 community colleges across America were granted $125 million under this program.

These funds will assist workers in 36 states, including Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Illinois, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington and Wisconsin.

Secretary of Labor Elaine L. Chao said, “Community colleges are in a unique position to prepare local workers for careers in high-growth industries. The $125 million awarded today will expand enrollment in education and training programs and provide more workers with the skills they need to succeed.”

The focus of the Community-Based Job Training Grants is to provide community colleges with programs to train people in areas where industries need workers with a particular set of skills. For example, a grant for training in the energy industry may be awarded to a community college in New Mexico near a cluster of nuclear power plants that require more skilled workers.

As a result of factors such as globalization, technology, innovation and an aging workforce, many industries are in dire need of skilled employees. Industries across the county, including advanced manufacturing and construction are seeking skilled employees. Regional industries, too, are in need of qualified workers. For example, Crescent City, California’s hospitality industry needs skilled workers.

The economy in Michigan isn’t at its best, and the jobless rate is quite high. Several companies have moved plants to neighboring states where the minimum wage is lower, such as Indiana with a minimum of $5.85 per hour.

On July 24, 2008, the Indiana minimum will go up to $6.55, and will still be less than Michigan’s minimum on that date of $7.40.

The minimum wage in Michigan has increased from $5.15 per hour in 2005 to $6.95 in 2006, to $7.15 in 2007. On July 1, 2008, another 25 cents per hour will be added the Michigan minimum wage, bringing it to $7.40.

Governor Jennifer Granholm has been the champion of these increases, but some people are wondering about the timing of the increases. With so many people losing their jobs, critics fear increasing the minimum wage may worsen the situation.

Another consideration relates to the U. S. Department of Labor regulation that any employee covered by both state and federal minimum wage is entitled to the one which provides greater benefit. In Michigan, the state minimum is 85 cents higher than the federal minimum so practically every worker is entitled to the state minimum wage.

The Michigan Minimum Wage Law covers every company that employs 2 or more workers over 16 years old. Workers who put in more than 40 hours per week are eligible to be paid overtime, which is 1.5 times the employee’s regular hourly rate.

Though the minimum wage for regular workers will increase, the minimum for tipped workers will not. The current minimum is $2.65 per hour. After July 1, 2008, workers who earn tips of at least $4.75 per hour may be paid the tipped rate. Employees who earn less that $4.75 per hour must be paid a high enough rate so that tips and wages combined equal the federal minimum wage.

With these changes to the minimum wage rates, all employers must bring their labor law posters up to date.

Michigan Comp Time

One unique feature of Michigan minimum wage law will remain unchanged. Every Michigan employer with 2 or more workers over the age of 16 is covered under the Michigan Minimum Wage Law of 1964. This law permits these employers to grant workers comp time, in some cases, instead of paying overtime wages.

Michigan is one of the few states that grants compensatory time (paid leave at a future date), instead of overtime. The FLSA (Fair Labor Standards Act of 1938) prohibits comp time, however, except for non-profit organizations. Therefore, any Michigan employer that is covered under FLSA may not grant comp time to its employees.

Eligibility details are outlined in MCL 408.384a (8) of the Michigan Compiled Laws.

Michigan employers not covered by FLSA may grant comp time, but only if the worker presents a request for it in writing. The Michigan Department of Labor and Economic Development states that coercing, intimidating, or making comp time a condition of a worker’s employment is prohibited.

If an employer wants to cancel a comp time program, it must provide employees with at least 2 months notice.

To be eligible to receive comp time, an employee must receive 10 days paid leave each year. If a worker doesn’t receive 10 days of paid leave, the company must pay the worker overtime wages.

Employees can accrue comp time up to 240 hours. When a worker leaves the job, he or she must receive payment for any unused comp time.

When an employee puts in a request to use comp time, the company must comply. There is an exception to this rule. If the worker’s absence would cause too great a disruption, the employer is within its rights to deny the request. All comp time must be paid at the employee’s wage when the time was earned.

Comp time is earned at the same rate as overtime pay. For every hour worked over 40 hours in week, the employee gets 1.5 hours of comp time. For example, John works 45 hours one week and elects to take comp time. His 5 hours of overtime earn him 7.5 hours of paid time off.