AUGUST 9, 2024
New Michigan Minimum Wage and Sick Leave Requirements in 2025
The Michigan Supreme Court’s recent decision in Mothering Justice v. Attorney General will have significant impacts on the minimum wage and paid sick leave laws. The court determined that the legislature acted unconstitutionally when it rolled back certain portions of two ballot initiatives that voters approved in 2018. As a result, on February 21, 2025, the original terms of the voter-approved minimum wage and sick leave ballot initiatives will be reinstated as law.
Minimum Wage
The current minimum wage in Michigan is $10.33 per hour. As a result of the court’s decision, the minimum wage will increase. It is anticipated to increase to around $12.50 next year; however, the exact increase is presently unknown because the court is requiring an inflation adjustment. The Michigan Treasurer will provide an update on the precise minimum wage increase in the coming weeks. SSAM will provide more information as it is available. Following the initial increase, the minimum wage will be increased until 2028 when it reaches $12 plus an inflation adjustment.
Paid Sick Leave
- What Employers Are Covered?
Starting on February 21, 2025, all Michigan employers with one (1) or more employees, including self storage owners and operators, must provide paid sick leave. This is a change from current law, which exempts smaller businesses (those with fewer than 50 employees) from providing paid sick leave.
- What Employees Are Covered?
Similarly, the law currently requires that employers provide paid sick leave only to full-time and non-exempt employees. Starting next February, all employees – including part-time, temporary, exempt, and seasonal – are eligible for paid sick leave.
- How Is Paid Sick Leave Accrued and How Can It Be Used?
Starting in February, employees will accrue paid sick leave at a rate of 1 leave hour for every 30 hours worked. An employee may accrue and use a maximum of 72 hours of paid sick leave, which is an increase from the current maximum of 40 hours.
- Are Small Businesses Eligible to Provide Less Paid Sick Leave?
Yes and no. All workers, regardless of their employer’s size, are eligible to use up to 72 hours of accrued sick leave. However, smaller employers with fewer than 10 employees are only required to pay employees for up to 40 hours of sick leave. These smaller employers may choose not to pay employees for sick leave in excess of 40 hours.
Next Steps
All SSAM members should carefully review the new minimum wage and sick leave requirements. Time and attention should especially be given to the sick leave requirements as many members were likely exempt before the court’s decision. Consultation with your legal counsel and accountant is strongly encouraged.
Also, there is a chance that the Michigan Legislature will act to further amend the laws before they take effect next year.
Further updates will be provided as they become available.
Click Here for the Complete Update
January 2021
BUILDING CODES UPDATE
Changes to the International Building Code Affect Self Storage
With the support of its Code Committee, the Self Storage Association successfully pursued several key changes to the 2021 International Building Code.
- An exception has been added to IBC Section 2902.3.3 to permit an increase in the location (to greater than every other floor) and maximum distance of travel (to greater than 500 ft) for restrooms. The location and travel distance must be approved by the code official.
- The maximum allowable height of sprinklered facilities made of Type IIB materials (unprotected steel) and Type IIIB materials (noncombustible or fire-retardant-treated wood stud exterior walls and any interior construction) has been increased from 3 stories to 4 stories. The Code continues to have total floor and building square footage limits.
- Pursuant to modified IBC Section 903.2.9, storage facilities are exempt from the automatic sprinkler system requirement if: (1) the total fire area is 12,000 sq. ft. or less; (2) the combined total fire areas are 24,000 sq. ft. or less; (3) the facility is no greater than one story above grade plane; and (4) all storage spaces are accessed directly from the exterior.
These changes go into effect as they are adopted by local and state governments over the next several years. Prior to the adoption on the local and state level, storage developers can request that the code official rely on the 2021 changes as acceptable alternative methods of construction pursuant to section 104.11 of the existing International Building Code.
Please email Joe Doherty with any questions or to receive supporting documentation for these changes.
Self-Storage Facility Forms:
Transfer and release of personal property in self-storage unit
2007 Public Act 148 (In effect 12/10/07)
Use tax; collections; application of tax to certain services; prohibit collection and enforcement.
View Act
Debt Collection
Note: SSAM encourages members to adhere to the Fair Debt Collection Practices Act and use as a guideline in collection efforts, although the law is intended for collection agencies specifically.