Labor: benefits; certain types of accrued leave; require an employer to pay to an employee when employment is terminated. Amends secs. 1 & 5 of 1978 PA 390 (MCL 408.471 & 408.475).

This bill requires Michigan employers to pay employees for any accrued but unused paid vacation leave when employment ends. It applies to workers who have earned vacation time but didn't use it before leaving a job, such as through resignation or termination. Employers must pay this out unless the separation was a furlough (a temporary shutdown under specific conditions) or the employer provided unlimited vacation leave. The law will take effect on January 1, 2027.