On December 14, 2018, the Paid Medical Leave Act (“PMLA”) was signed into law and becomes effective on March 29th of 2019. The PMLA applies to dealers who employ 50 or more employees and requires that they grant eligible employees up to 40 hours of paid medical leave annually. The paid medical leave can be used for a variety of reasons, including in cases of an employee’s own illness/injury or during an illness/injury to one of their listed family members.
There has been some confusion regarding what additional steps would be needed to ensure compliance with the PMLA. Fortunately, it appears most dealers are already in compliance for most, if not all their employees. The PMLA provides a rebuttable presumption of compliance if the employer already provides at least 40 hours of paid time off, which includes any paid vacation days, paid personal days, or paid time off. Dealers who already provide this to employees are presumed to meet the new law’s requirements.
Regardless, dealers should still be aware how paid medical leave is calculated. Under the PMLA, paid medical leave accrues for eligible employees at a rate of at least one hour for every 35 hours worked. This requirement is capped at 40 hours of paid medical leave per benefit year and one hour per week. Employees can carry over accrued hours to the next benefit year, but an employer need not allow use of more than 40 hours in a single benefit year. Accrual of medical leave begins upon the effective date of the law, or upon commencement of an employee’s employment.
The PMLA also provides an employer the option of simply providing 40 hours of paid medical leave at the beginning of each benefit year. The PMLA also provides options as it relates to notice requirements, employee leave usage, and other relevant provisions.
The Department of Licensing and Regulatory Affairs (LARA) will be providing posters summarizing the law which dealers will be required to post. These will become available closer to when the law comes into effect in March. Once provided, the poster should be placed alongside the other employment information materials already posted. Additionally, each dealer should have a written policy/guide on Paid Leave and Paid Medical Leave to ensure compliance with the PMLA.
If you need assistance developing and implementing a policy, we recommend you contact a member of the Dealer Practice Group below, who can assist you in complying with these new requirements at 248-645-9300 or by email.
Chuck LeFevre – [email protected]
Lawrence F. Raniszeski – [email protected]
Michael J. O’Shaughnessy – [email protected]
Eric R. Bowden – [email protected]
Alycia Pallach Wesley – [email protected]
Nicholas J. Ranke – [email protected]
