In 2018, the Michigan Legislature adopted a ballot initiative providing for a paid sick time statute (originally titled, Earned Sick Time Act or ESTA).
Rather than enacting without change, the Legislature substantially amended the ballot initiative and enacted such amended initiative into law. This action ultimately resulted in litigation to determine whether the Legislature’s action was lawful.
On July 31, 2024, the Michigan Supreme Court published its long-awaited opinion in Mothering Justice v. Attorney General. The Court held the Legislature’s adopt-and-amend approach as unconstitutional, and accordingly will reinstate the original initiative, with an effective date of February 21, 2025.
There remains a possibility that the Legislature could amend the ESTA during this session and therefore modify the requirements imposed on employers. In fact, a Senate Bill has been proposed which would revert the ESTA back to the language of Michigan’s Paid Medical Leave Act (PMLA). It remains to be seen whether the Legislature will act on this proposed bill, or any other bills related to the ESTA during this session.
In the meantime, however, Michigan’s Wage and Hour Division is anticipated to release proposed regulations to interpret and help clarify the provisions of the ETSA.
Changes to Paid Sick Leave
If the Legislature does not amend the ESTA prior to its implementation, the changes to Michigan’s paid sick leave statute will be substantial. Previously, only certain employers with 50 or more employees were required to abide by the provisions of Michigan’s PMLA. Now, beginning February 21, 2025, all Michigan employers, regardless of size, will be subject to the provisions of the Earned Sick Time Act.
The ESTA will entitle all employees to accrue one hour of earned sick time for every thirty hours worked (as opposed to one hour for every 35 hours worked under the PMLA). Further, employers must allow employees to use up to 72 hours of sick time in a given year. For employers with ten (10) or more employees, all 72 hours of sick time must be paid. For employers with fewer than ten (10) employees, only 40 hours of sick time must be paid, but the remaining 32 hours must be allowed to be taken as unpaid sick time.
Employers will need to comply with the numerous other changes required by the Earned Sick Time Act, including the expansion of the reasons for which employees can use paid sick leave, the expanded definition of “family member,” extended retention requirements, additional notice requirements, and changes to when employers can require supporting documentation, among others.
Next Steps for Employers
To prepare for this Act, employers will need to revise their paid sick leave policies, train human resource professionals regarding compliance with the new requirements, and otherwise familiarize themselves with the requirements of the restored ballot initiative.
For these reasons, we encourage all Michigan employers to consult with their labor and employment counsel to determine and implement necessary changes to their respective workforces.
