Earned Sick Time Action Center

ESTA Fix Passes Legislature

Shortly before the Earned Sick Time Act (ESTA) took effect at 12:01 a.m. February 21, 2025, the Legislature passed a bill to address many of the most challenging issues of the law and establish a different requirement for small businesses.

House Bill 4002 (Representative Jay DeBoyer, R-Clay) has been sent to the Governor’s desk.

Some of the most impactful elements of the final version of include:

• Employers with 11 or more employees must provide 72 hours of paid sick leave.
• Employers with 10 or fewer employees must provide 40 hours of paid sick leave.
• Employers may frontload paid sick leave, and in doing so, avoid tracking employee accrual and any carryover of unused hours at the end of a benefit year.
• Employers may use one single bank of PTO time as long as it can be used for ESTA reasons
• Unpaid employees, trainees, interns, variable hour workers, independent contractors and minors are not eligible for the mandated paid sick leave.
• Carryover from year to year is capped at 40 hours for small employers and 72 hours for all others, unless the employer frontloads the hours at the start of a benefit year.
• Overtime, holiday pay, bonuses, commissions, supplemental pay, piece-rate pay, tips or gratuities do not have to be considered when calculating an employee’s ESTA pay.
• Employers may require notice prior to taking sick leave in accordance with their written policy even in unforeseen situations. Employers may take adverse personnel actions for those who violate this notification requirement.
• ESTA may be used in 1-hour increments or the smallest increment that employer uses for absences or use of other time.
• The private right of action and rebuttable presumption against employers have been eliminated. Employers have 30 days following the effective date of the Act to provide notice to employees.

Upcoming ESTA Events

Navigating Michigan’s New Earned Sick Time Act in West Michigan

Thursday, February 21, 2025 • Grand Rapids • 8:00 a.m.

The Michigan Supreme Court’s ruling on the Earned Sick Time Act (ESTA) is set to take effect on 2/21/25, bringing significant changes for Michigan employers. Join MMA and Rehmann in Grand Rapids on inplementation day for an in-person discussion on what employers need to know, key compliance considerations and how to prepare.

Rehmann’s Elizabeth Williams will discuss the key aspects of the law, highlight essential policy adjustments that Michigan employers should consider and examine the potential repercussions of non-compliance. Join us to prepare yourself with the knowledge and strategies necessary to confidently navigate this new legal framework.

Learn more and register online.

Discover the New Requirements of Michigan’s Earned Sick Time Act

Tuesday, February 25, 2025 • Webinar • 2:00 p.m.

With the Earned Sick Time Act (ESTA) now in effect on all employers in Michigan, learn more about the changes made to the law in the literal 11th hour and how they could improve your ability to comply. Join MMA’s Dave Worthams and Honigman’s Matt Radler for a critical virtual discussion on the latest developments affecting Michigan manufacturers.

Learn more and register online.

Background

The Michigan Department of Labor and Economic Opportunity (LEO) has been reviewing the decision rendered by the Michigan Supreme Court in Mothering Justice v. Attorney General (a.k.a. paid sick leave case). As a result of that decision, major changes have been made to the state’s earned sick time law. Watch this on-demand video for historic background that led to ESTA.

Resources

• House Bill 4002
• Summary of amendments presented in HB 4002