Compliance FYI: Michigan Paid Sick Leave Requirements
In July 2024, the Michigan Supreme Court issued an opinion in Mothering Justice vs. Attorney General that altered the legal requirement for Michigan employers to provide paid sick leave. The Michigan Supreme Court’s opinion voided the existing Paid Medical Leave Act (PMLA) and restored the Earned Sick Time Act (ESTA) which the PMLA had replaced. Effective February 21, 2025, Michigan employers must comply with the requirements of the ESTA.
Covered Employers and Employees
The ESTA applies to all employers, except the Federal government, that employ 1 or more individuals. Small businesses, which employ fewer than 10 individuals, are covered by the ESTA but have slightly different requirements. All employees of covered employers, except for certain railways workers, are subject to the ESTA.
Amount of Leave
Employees accrue 1 hour of sick time for every 30 hours worked. While accrual is not capped, employees can be limited to using 72 hours of sick time per year. For ESTA purposes, a “year” is any 12-month period.
Unless employed by a small business, employees may use up to 72 hours of paid sick time a year.
Employees of small businesses may use up to 40 hours of paid sick time a year. If an employee of a small business accrues more than 40 hours of sick time, they must be able to use at least 32 hours of unpaid sick time in addition to the 40 hours of paid sick time. Employees of small businesses must be allowed to use paid sick time prior to any unpaid sick time.
Employers can comply with the ESTA using an existing paid leave policy. To be compliant, the existing policy must:
- provide at least the same amount of paid leave as the ESTA;
- permit using leave for the same purposes and under the same conditions as the ESTA; and
- permit the accrual of leave at the same or greater rate as under the ESTA.
Reasons for Leave
Leave under the ESTA can be taken due to:
- an employee’s or employee’s family member’s mental or physical illness, injury, or health condition; medical diagnosis, care, or treatment of the employee’s or employee’s family member’s mental or physical illness, injury, or health condition; or preventative medical care for the employee or employee’s family member;
- the employee or employee’s family member is a victim of domestic violence or sexual assault needs to take certain actions in response;
- meetings at a child’s school or place of care related to the child’s health or disability, or the effects of domestic violence or sexual assault on the child;
- the closure of an employee’s place of business by a public health official due to a public health emergency;
- an employee’s need to care for a child whose school or place of care is closed by a public health official due to a public health emergency; and
- when a health authority/health care provider determine that the employee’s or employee’s family member’s presence in the community would jeopardize the health of others because of the employee’s or family member’s exposure to a communicable disease.
Employers may require employees to wait until the 90th calendar day of employment before they can use leave under the ESTA. If the need to use leave is foreseeable, an employer may require 7 days’ notice prior to using leave. If the need for leave is unforeseeable, notice can be required as soon as practicable.
Family Member Definition
The ESTA defines “family member” broadly. In addition to covering familial relationships, the term “family member” includes “any other individual related by blood or affinity who close association with the employee is the equivalent of a family relationship.”
Employer Requirements
Employers must provide a written notice containing information on ESTA to employees by February 21, 2025, or date of hire, whichever is later. The same information must also be posted in a conspicuous place that is accessible to employees. The Michigan Department of Labor and Economic Opportunity created a model English and Spanish notice/poster available here.
Employers must retain records for at least 3 years documenting the hours worked and earned sick time taken by employees.
Key Takeaways:
Employers with employees in Michigan should carefully review the requirements of the Earned Sick Time Act prior to the February 21, 2025, effective date. Some employers may be able to leverage existing paid leave policies to comply with the law while others may find their current policies need to be updated to remain compliant.
The information provided is a summary of laws and regulations relating to employee benefit plan compliance. This information should not be construed as legal advice. In all cases, employers should consult with their own legal counsel.
