Michigan’s Earned Sick Time Act (ESTA) went into effect on Friday but was met with last minute amendments which were signed by Governor Gretchen Whitmer.
The amendments contain key differences employers should consider as they roll out policies to comply with the ESTA.
These changes include:
- Frontloading the time is expressly permitted
- Carryover of hours is not required if an employer frontloads the sick time
- Small employers no longer need to provide 32 hours of unpaid leave, only up to 40 hours of paid leave
- Employers can require an employee wait 120 days after hire to use sick time
- Employees may file a complaint with the Department of Labor & Economic Opportunity, but no longer have a private right of action
Employers may have a PTO policy that provides at least the same amount of leave under the same conditions as the ESTA. Notably, the amended version states that is does not require an employer who offers paid leave in compliance with the ESTA to allow an employee to use more than the required amount of leave (up to 72 hours for larger employers) for purposes of sick leave. This added language seems to imply that employers can designate certain hours in a PTO policy for sick time and have other hours for vacation that would not then be subject to the strict notice requirements of the ESTA.
Employers also have thirty days (from February 21, 2025) to provide notice to employees. The Department of Labor & Economic Opportunity is likely to generate a new poster and provide further guidance on these amendments.
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