Michigan’s New Earned Sick Time Act: What Employers and Employees Need to Know

Posted by Philip E. Hamilton, Esq. | Feb 13, 2025 | 0 Comments

Effective February 21, 2025, Michigan's introducing significant changes that both employers and employees need to understand.

Key Changes Under the Earned Sick Time Act (ESTA)

1. Employer Coverage:

Current PMLA: Applies to employers with 50 or more employees.
New ESTA: Extends to all employers with at least one employee, significantly broadening its reach.

2. Employee Eligibility:

Current PMLA: Excludes part-time employees working less than 25 hours per week on average in the preceding calendar year.
New ESTA: Covers nearly all employees, with the primary exception being individuals employed by the U.S. government.

3. Accrual and Usage:

Employees accrue one hour of paid sick leave for every 30 hours worked.
Annual cap: 72 hours of paid sick leave per year.
Small businesses (fewer than 10 employees) must provide up to 40 hours of paid sick leave and 32 additional hours of unpaid sick leave annually.

4. Permissible Uses:

Employees may use paid sick leave for:

Personal or family illness, injury, or medical appointments.
Workplace or school closures due to public health emergencies.
Absences related to domestic violence or sexual assault.
Attending school meetings related to a child's health, disability, or domestic violence situation.

5. Expanded Definition of "Family Member":

Includes:

Domestic partners
Any individual related by blood or affinity whose close association is the equivalent of a family relationship.

6. Carryover and Frontloading:

Unused paid sick leave must be carried over from year to year.
Employers may frontload the full amount at the beginning of the benefit year to comply with ESTA.

7. Notice and Documentation:

Employers may require reasonable documentation for absences exceeding three consecutive days.
Employees should provide up to seven days' notice for foreseeable absences and as soon as practicable for unforeseen ones.

Action Steps for Employers:

Policy Review: Update leave policies to comply with ESTA.
Recordkeeping: Maintain at least three years of records on hours worked and leave taken.
Employee Communication: Inform employees about their rights under ESTA.
Training: Educate HR teams and managers on compliance requirements.

Guidance for Employees:

Know Your Rights: Understand how ESTA applies to you.
Track Your Leave: Keep records of accrued sick time.
Communicate with Your Employer: Provide proper notice when requesting sick leave.

For further details, visit the Michigan Department of Labor and Economic Opportunity's website.

Employers needing legal guidance on compliance with the Earned Sick Time Act can reach out to Hamilton Law for assistance.

Hamilton Law Blog