2024 House Bill 5734

Labor: benefits; certain types of accrued leave; require an employer to pay to an employee when employment is terminated.

A bill to amend 1978 PA 390, entitled “An act to regulate the time and manner of payment of wages and fringe benefits to employees; to prescribe rights and responsibilities of employers and employees, and the powers and duties of the department of labor; to require keeping of records; to provide for settlement of disputes regarding wages and fringe benefits; to prohibit certain practices by employers; to prescribe penalties and remedies; and to repeal certain acts and parts of acts,” by amending sections 1 and 5 (MCL 408.471 and 408.475), section 1 as amended by 2016 PA 18.

Mackinac Center Analysis

This bill requires that most forms of paid leave time be paid out upon voluntary separation of employment. Most forms of leave, including PTO in the form of combined sick and vacation leave is included, with certain exceptions.