Sterling Employment Law Sterling Employment Law 2026-06-23T16:04:17Z https://www.sterlingattorneys.com/feed/atom/ WordPress /wp-content/uploads/sites/1605073/2024/04/cropped-site-icon-sterling-32x32.jpg by Katherine Cser <![CDATA[Employers: Think Twice Before Assuming Your Highly Paid Worker is Exempt from Overtime Pay]]> https://www.sterlingattorneys.com/?p=50476 2025-05-13T18:35:29Z 2025-05-13T18:33:48Z Background: Last month, the Sixth Circuit Court of Appeals ruled in Pickens v. Hamilton-Ryker IT Solutions that an employee earning $270,400 annually was not exempt from the overtime pay requirements of the Fair Labor Standards Act (“FLSA”). The case involved a pipeline inspector who was paid a fixed weekly salary for eight hours of work each week plus additional hourly pay at the rate of $100/hour. The employer considered the inspector to be exempt from overtime compensation under the “salary basis test”, which requires an employee to receive at least $684 each week and perform certain duties. In making its determination that the pipeline inspector was not exempt from the FLSA’s requirements, the Sixth Circuit emphasized that a true salary remains constant regardless of hours worked, and the employee’s variable pay based on hours exceeding eight and based on a guaranteed portion of pay failed the “salary basis test.” Takeaway: This ruling from the Sixth Circuit underscores that simply paying employees more than the minimum of $684 is not enough to satisfy the salary basis exemption.  Employers considering making their employees exempt should review their pay structure to ensure that it meets the technical requirements of the FLSA and consult with an employment attorney if they have questions. Failure to pay overtime when required can make employers liable for overtime premiums, an equal amount for liquidated damages, plus attorneys’ fees and costs. A link to the decision is available here.  ]]> On Behalf of Sterling Employment Law <![CDATA[What are CIC agreements, and how can they affect executives?]]> https://www.sterlingattorneys.com/?p=50427 2025-01-27T14:07:34Z 2025-01-30T06:44:23Z What does a CIC agreement do? The purpose of a CIC agreement is to protect an executive's employment and clarify their relationship with the company when there is a change in ownership. If another company purchases the business, if the members of the board of directors change, or if the company faces major financial or legal challenges, those changes may trigger a CIC agreement. Executives sometimes attempt to leave companies at the beginning of a merger, which can reduce the profitability of the organization or the attractiveness of the merger to the other business. Their exit in the middle of a transition can leave the organization vulnerable. In scenarios where ownership or management at a business changes, a CIC agreement influences the benefits and compensation of executives. The goal is often to facilitate a smooth exit or to ensure their retention during the transition.

CIC agreements and severance pay

A CIC agreement can clarify severance pay and help protect both the executive and the business from the tax consequences of a golden parachute. The agreement can ensure that the company receives transitional support from existing executives and can provide an incentive for executives to cooperate with new organizational leadership during times of upheaval. Reviewing the terms of an executive employment contract and the language used in a CIC in particular with a skilled attorney is crucial.]]> On Behalf of Sterling Employment Law <![CDATA[Michigan’s new Earned Sick Time Act and its impact on pregnant employees]]> https://www.sterlingattorneys.com/?p=50413 2025-03-25T16:46:52Z 2025-01-23T17:21:49Z How ESTA works for pregnant employees Under the new law, effective February 21, 2025, you can use earned sick time for several reasons that may be particularly relevant during pregnancy:
  • Medical appointments: Use your sick time for regular check-ups or any medical care needed during pregnancy.
  • Illness or health conditions: If you experience any pregnancy-related health issues, you can take time off to rest and recover. After giving birth, you can also use this time to recover.
  • Family needs: The law allows you to use sick time to care for sick or injured family members, which can be helpful if you need to care for a child, your partner or another family member while pregnant.
  • Domestic violence: This provision allows you to take time off to seek necessary medical care or counseling, relocate for safety or participate in legal proceedings related to domestic violence.
Employers cannot retaliate against you for using your earned sick time. If you have questions or face issues with your employer regarding ESTA, seeking legal help is advisable. A lawyer can help protect your rights and navigate conflicts with your employer. Michigan's Earned Sick Time Act empowers pregnant employees by giving them the right to take paid leave for health-related needs. This support is crucial in ensuring the well-being of both the mother and the baby. Pregnant employees should familiarize themselves with their rights under this law to take full advantage of the benefits it offers.

Answers to your questions

Contact an employment law attorney to learn more about how ESTA might affect you.]]> On Behalf of Sterling Employment Law <![CDATA[Michigan’s new Earned Sick Time Act: A guide for other caregivers]]> https://www.sterlingattorneys.com/?p=50414 2025-03-25T16:34:58Z 2025-01-23T17:16:28Z How the act works Under this law, workers can use earned sick time for several reasons. They can take time off if they or a family member, a child, parent, sibling, or grandparent, is ill or needs medical care. This includes going to the doctor or getting treatment for an illness or injury. Employees can also use this time if they or their family members are victims of domestic violence or sexual assault. In these cases, the law allows time off for:
  • Medical care
  • Counseling
  • Legal services
Employees can also take time off for school meetings about a child's health or disability. If a public health emergency closes a school or workplace, caretakers can use their sick time to care for a child. The law also protects employees from having to find someone to cover their shifts when they take time off.

Who counts as family?

The Earned Sick Time Act has a broad definition of family. It includes:
  • Biological, adopted or foster child, stepchild or legal ward, a child of a domestic partner, or a child to whom the employee stands in loco parents.
  • Biological parent, foster parent, stepparent, or adoptive parent or a legal guardian of an employee or an employee’s spouse or domestic partner or a person who stood in loco parentis when the employee was a minor child.
  • Grandparent.
  • Grandchild.
  • Biological, foster, or adopted sibling.
  • Any other individual related by blood.
  • “Domestic partner” means an adult in a committed relationship with another adult, including both same-sex and different-sex relationships.
  • “Committed relationship” means one in which the employee and another individual share responsibility for a significant measure of each other’s common welfare, such as any relationship between individuals of the same or different sex that is granted legal recognition by a state, political subdivision, or the District of Columbia as a marriage or analogous relationship, including, but not limited to, a civil union.
It also covers anyone related by blood or with a close family-like relationship with the employee. This means caregivers who are not parents can still use the benefits of this law. For example, grandparents can use earned sick time to take their grandchildren to doctor appointments or care for them during illnesses. Siblings can take time off work to help a brother or sister recovering from surgery or dealing with a chronic condition.

Get advice you can trust

Understanding all the details of this law can be challenging. If you are a caregiver, seeking legal advice might be a good idea. An experienced lawyer can help you understand your rights and make sure you get the benefits you deserve. They can also assist if you face any issues with your employer about using earned sick time.]]> On Behalf of Sterling Employment Law <![CDATA[How Michigan’s new sick-time law applies to parents and caregivers]]> https://www.sterlingattorneys.com/?p=50425 2025-03-25T16:32:34Z 2025-01-23T17:11:03Z How ESTA applies to parents and caregivers ESTA provides essential protections for employees who are parents or caregivers. Parents can use earned sick time to care for their children when they are sick or need medical attention. Caregivers can also use this time to look after other family members who require care. This ensures that employees do not have to choose between their jobs and their family's health.

Six eligible reasons for using earned sick time

Under the ESTA, employees can use earned sick time in several circumstances:
  1. Personal illness or injury: Employees can take time off for their own physical or mental illness, injury, or health condition. It includes medical diagnosis, care, or treatment.
  2. Family member's illness or injury: Employees can use sick time to care for a family member with a physical or mental illness, injury or health condition. It also includes medical diagnosis, care or treatment for the family member.
  3. Preventive care: Sick time can be for preventive medical care for the employee or their family members.
  4. Public health emergencies: If a public official closes the employee's workplace or their child's school or place of care due to a public health emergency, employees can use earned sick time.
  5. Domestic violence or sexual assault: Employees can use sick time if they or their family members are victims of domestic violence or sexual assault. It includes time for medical care, counseling, legal services, or relocation.
  6. School meetings: Employees can use sick time to attend meetings at their child's school related to the child's health or disability.

Who qualifies as a "family member"?

Michigan's ESTA defines "family member" broadly to include:
  • A biological, adopted or foster child, stepchild or legal ward
  • A biological, adoptive or foster parent, stepparent or legal guardian
  • A spouse or domestic partner
  • A grandparent or grandchild
  • A sibling
  • Any individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship

How much sick time is there?

Parents and caregivers should be aware that the ESTA allows all sick time hours to be frontloaded at the start of the year. Employers with fewer than 10 employees must provide up to 40 hours of paid sick time and an additional 32 hours of unpaid sick time per year. Employers with 10 or more employees must provide up to 72 hours of paid sick time annually. Unused sick time can carry over to the next year, but employers may limit sick time to 72 hours per year. Employees can start using their accrued sick time after 120 days of employment.

Do you still have questions?

By understanding these provisions, parents and caregivers can better manage their work and family responsibilities, ensuring they have the time to care for their loved ones without risking their employment. Those with questions can contact an employment law attorney to learn more.]]> On Behalf of Sterling Employment Law <![CDATA[What are protected activities in whistleblower cases?]]> https://www.sterlingattorneys.com/?p=50408 2024-11-22T13:56:46Z 2024-11-27T08:12:27Z whistleblowers have protection under federal and state law and should not face employer retaliation. What whistleblower actions may be considered protected activities?

Speaking up is a protected activity

Workers have the right to notify management within the company about illegal activity or unsafe work conditions. They should be able to report misconduct internally without fearing that the employer might retaliate. If employers fail to take internal reports seriously, whistleblowers may decide they need to notify outside authorities about their concerns. Reporting issues to regulatory agencies is also a protected activity. Notifying state or federal authorities about workplace safety violations or illegal company behavior is a protected activity for those acting as whistleblowers. The law also protects the right of workers to initiate qui tam lawsuits against their employers on behalf of the government.

Numerous behaviors have federal protection

There is a lengthy list of individual activities that may not necessarily make a worker a whistleblower but still have protection under the law. Protected workplace activities include:
  • Organizing with coworkers
  • Discussing wages
  • Documenting unsafe circumstances
  • Reporting safety violations
  • Requesting leave under the Family and Medical Leave Act
  • Filing a workers' compensation claim
  • Reporting violations of wage law
  • Drawing attention to harassment or discrimination
  • Seeking accommodations for disabling medical conditions
  • Testifying in a wrongful termination case
Workers who report violations or engage in other protected activities should not face employer punishment. Workers should not face threats or any other kind of retaliation for asserting their rights or acting as whistleblowers. Current and prospective whistleblowers who worry about retaliation and protecting themselves may need assistance as they prepare to take action. Maintaining clear documentation and learning more about the law can help people report misconduct without putting themselves at risk.]]> On Behalf of Sterling Employment Law <![CDATA[What you need to know about Michigan law changes for paid leave and minimum wage]]> https://www.sterlingattorneys.com/?p=50390 2024-11-11T20:38:07Z 2024-10-24T17:13:14Z Here is the court’s order. Business leaders and workers alike are wise to make sure they stay abreast of these changes and how they could impact your interests when dealing with an employment law issue. Below are more details.

Paid leave

Arguably the most notable and complex changes stem from the overhaul of Michigan’s Paid Medical Leave Act (PMLA). The new Earned Sick Time Act (ESTA), set to replace PMLA, marks a significant shift in paid leave benefits:
  • Coverage changes: ESTA extends coverage to all employees in Michigan, including temporary, seasonal, and casual workers, and those outside the state who provide services within Michigan.
  • Update to accumulation of benefits: Businesses with 10 or more employees must provide up to a maximum of 72 hours of sick leave annually. Smaller business must provide up to 40 hours of paid sick leave and 32 hours of unpaid sick leave annually.
This expansion of sick leave is one of the most aggressive of its kind in Michigan’s history. It is important for employers to understand these changes to avoid potential legal challenges.

Minimum wage and tipped wage

The Supreme Court’s decision also accelerates changes to the minimum wage and phases out the tipped wage credit, which will impact businesses differently. Starting on February 21, 2025, the minimum wage will increase to $10.00, adjusted for inflation, with subsequent annual increases. Although businesses will know the actual rate in November, it is estimated at $12.50. The tipped wage credit will also gradually decrease, starting at 48% of the minimum wage in 2025 and ending with the full phase-out by 2029. These adjustments require businesses, especially in the hospitality industry, to reassess their wage structures to comply with the new regulations. It is also important to note that the changes strengthen anti-retaliation protections. Violations of these provisions carry significant penalties, emphasizing the importance of compliance.

Additional changes possible

Advocates for the proposal above note that it will help the workers that need it most while critics argue the potential damage to businesses is too great to ignore. It is possible lawmakers could modify the rules before they go into effect.  ]]> On Behalf of Sterling Employment Law <![CDATA[Does Michigan have any pay transparency laws?]]> https://www.sterlingattorneys.com/?p=50381 2024-09-19T10:30:30Z 2024-09-24T10:29:59Z pay transparency law, city-specific ordinances and industry regulations help promote pay equity in certain sectors.

City ordinances: Detroit and Ann Arbor leading the charge

Although the Great Lake State lacks a statewide law on pay transparency, some cities have taken the initiative to establish their own pay transparency rules. For example, both Detroit and Ann Arbor have local ordinances that include provisions designed to enhance wage transparency and fairness. In Detroit, one of the largest cities in the state, efforts have been made to push pay equity through hiring practices in the public sector and in businesses that contract with the city. Detroit's policies help ensure that wage scales are more visible to prospective employees and help prevent discriminatory pay practices. Similarly, Ann Arbor has adopted pay equity measures that extend to city government jobs and contractors. While these local ordinances do not affect the entire private sector, they exemplify how individual cities can enact policies that contribute to greater transparency and fairness in wages.

Industry-specific requirements: Healthcare and public sector

In addition to city-specific ordinances, some industries in the Great Lake State are subject to pay transparency regulations, particularly in healthcare and the public sector. For example, hospitals and healthcare providers are required to post pay scales for certain roles, especially in unionized environments. Similarly, public sector employees—including state and city workers—often have salary information made publicly available, either through government portals or collective bargaining agreements. These industry-specific requirements help promote wage transparency for workers in healthcare and public roles, though they do not cover all employees across the state. The public sector, in particular, has long embraced transparency due to public accountability concerns, providing a framework that some advocates believe should extend to the private sector. While the Great Lake State does not currently have a statewide pay transparency law, the movement toward fair wages is gaining momentum, driven by city ordinances in places like Detroit and Ann Arbor and industry-specific healthcare and public sector regulations. For now, employees in all locations can benefit from staying informed and seeking legal guidance for clarifications concerning the disclosure of salary ranges.]]> On Behalf of Sterling Employment Law <![CDATA[What’s needed to prove age discrimination?]]> https://www.sterlingattorneys.com/?p=50335 2024-07-31T17:36:40Z 2024-07-31T17:36:40Z federal age discrimination statutes, it is illegal to take the age of a worker over 40 into consideration when making employment decisions. Some companies deny older workers opportunities, while others may turn a blind eye to their mistreatment. Workers over the age of 40 can potentially take legal action to hold employers accountable for discriminating against them based on their age.

Workers need proof of age-related mistreatment

As a general rule, those raising allegations of age discrimination on the job need evidence that an employer has treated them differently specifically because of their age. Typically, they need documentation, such as emails, showing that the company displayed favoritism toward a younger worker, ignored harassment or took adverse action toward a worker because of their age. Disciplinary efforts that are unfair can also be evidence of discrimination. Workers typically need to show that the company did something intentional to mistreat a worker or deny them reasonable opportunities. Perhaps those in supervisory or human resources roles at the company made jokes at the expense of an older worker or refused to take their complaints of coworker abuse seriously. The creation of a hostile work environment through co-worker or management misconduct is one actionable form of age discrimination. An employer making decisions based on someone's age instead of on their experience and ability may warrant an age discrimination lawsuit. The employee taking action in such cases needs clear evidence that the company made unfavorable employment decisions based on their age rather than on other factors. Keeping track of inappropriate interactions or maintaining a record of questionable disciplinary efforts can help establish a pattern of mistreatment. With the right documentation, a worker experiencing career setbacks or financial hardship can potentially hold an employer accountable for age discrimination. Successful lawsuits may result in financial compensation or even a company reinstating a worker terminated for inappropriate reasons.]]> On Behalf of Sterling Employment Law <![CDATA[What exactly is workplace discrimination?]]> https://www.sterlingattorneys.com/?p=50336 2024-05-27T12:22:17Z 2024-05-27T12:22:17Z two key elements that typically need to be present for a worker to build a successful claim of employment discrimination.

A worker must endure disparate treatment

Discrimination involves treating one person or one group of people differently when compared with the average employee. That different treatment is usually negative. A particular worker or group of workers may receive fewer opportunities or face harsher punishment than others within the company. The company may fail to offer one person or a group of people the same advancement or educational opportunities it provides to others. It may turn a blind eye to harassment coming from customers or coworkers. A company failing to offer the same opportunities and treatment to all employees could lead to allegations of discrimination.

A worker must have protected characteristics

The other main element of a discrimination case is a worker or group of workers having a personal characteristic protected by the law. It is illegal to treat workers differently because of their race, sex, religion, medical condition, national origin and genetic information. Disabilities, weight and height can also be protected characteristics in Michigan. Companies should not consider protective characteristics when making decisions about who to fire or hire, to promote or who receives a waging increase. Either treating workers differently because of protective characteristics or ignoring this conduct related to those characteristics could constitute discrimination. Employees who can prove that they’ve experienced unlawful discrimination can potentially take legal action. Workplace discrimination lawsuits can change how companies treat workers with certain characteristics and can also compensate those harmed by unfair employment practices. No one should have to endure different treatment based on their protected characteristics just to earn an income.]]>