Michigan | Reinstates Paid Sick Leave Law
After more than three years of litigation, the Michigan Supreme Court has determined that it was unconstitutional for the legislature to adopt and amend a voter-initiated petition in the same legislative session. As a result, the original sick leave law, proposed and approved by the voters of Michigan back in 2018, will take effect on February 21, 2025.
The Earned Sick Time Act requires employers of all sizes to provide paid earned sick time (EST) to all Michigan employees. There is no exception for small employers.
Employees will accrue EST at a rate of one hour for every 30 hours worked beginning February 21, 2025, or on their hire date—whichever is later. The law doesn’t address frontloading, but presumably, it will be allowed because it’s more beneficial to employees than hour-by-hour accrual. Carryover of unused accrued EST must be allowed from year to year. Employers can cap annual use of EST at 72 hours. Employers with nine or fewer employees are only required to pay for the first 40 hours of EST but must allow employees to use up to 32 additional hours unpaid.
To help employers prepare for the law, Michigan’s Department of Labor and Economic Opportunity (LEO) created a website that includes frequently asked questions (FAQs), the required poster (in English), and a link to the law.
Resourcing Edge will be following up with employers that have employees working in Michigan to assist in determining your plan for implementing the paid earned sick time.
