Summary of the Michigan Earned Sick Time Law

Key Provisions for Employers

Key Definitions:

• Employee:
  Any person providing services for compensation, with some exceptions (e.g., U.S. government employees, unpaid interns, or those covered by flexible scheduling policies, like gig workers).
• Employers may, with very few exceptions, impose a 120-day waiting period before new hires can access paid sick leave.

Start Dates:

• Non-Small Business Start Date:
  Earned sick time begins to accrue on February 21, 2025, or when an employee begins working—whichever comes later.
• Small Business Exception:
  Small businesses (those with 10 or fewer employees) are not required to comply until October 1, 2025. 

Accrual and Frontloading Options:

• Non-Small Businesses:
  • Option 1: Employees accrue a minimum of 1 hour for every 30 hours worked, up to 72 hours per year.
  • Option 2: An employer may choose to provide 72 hours upfront.
• Small Businesses:
  • Option 1: Employees accrue at a minimum of 1 hour for every 30 hours worked but are capped at 40 hours per year.
  • Option 2: An employer can provide 40 hours upfront.
• Part-Time Employees:
  Employers may provide a pro-rated upfront amount based on expected annual work hours, with adjustments if the employee works additional hours.

Usage of Earned Sick Time:

• Permissible Uses:
  Employees may use their accrued sick time for personal or family health issues, dealing with domestic violence or sexual assault, and attending school or care meetings for a child’s health or disability.
• Notice Requirements:
  
  • For foreseeable absences, advance notice (up to 7 days) is required.
  • For unforeseeable needs, notice must be given as soon as practicable or according to the employer’s written policy.
• Documentation:
  For sick time exceeding 3 consecutive days, reasonable documentation may be required (with specific provisions for domestic violence or sexual assault cases), and employers must cover any related costs.

Carryover and Reinstatement:

• Frontloading:
  If employers frontload paid sick leave at the start of the year without tracking accruals, no carryover is required. Different calculation methods may be applied for minimum frontloaded sick leave for part-time employees. Tracking accrual for full-time employees isn’t required when using frontloading. 
• Year-to-Year Carryover:
  Accrued sick time carries over from year to year, up to the cap (72 hours for most employers and 40 hours for small businesses), unless an employer chooses a higher limit. However, if you provide sick time on a frontloaded basis, you are not required to allow carryover.
• Employee Transfers and Rehiring:
  Employees retain their accrued sick time when transferred within the same employer or if rehired within two months after separation. Successor employers assume the obligation for previously accrued sick time unless a cash-out is provided.

Wage Requirements for Sick Time:

• Employees using earned sick time must be paid at a rate no less than their normal hourly or base wage or the applicable minimum wage—whichever is higher. Certain types of additional compensation are not included in this calculation.

Retaliation and Enforcement:

• Anti-Retaliation: 
  Employers cannot take adverse personnel actions against employees for using their earned sick time or exercising their rights under the law.
• Enforcement:
  Employees may file a claim with the Department of Labor and Economic Opportunity within 3 years of a violation. The department is responsible for investigating complaints and ensuring compliance.

Multiemployer Plan Exception:

• Employers who contribute to a multiemployer plan or are covered by a collective bargaining agreement have an exception to the 120-day waiting period for new hires, allowing those employees to use previously accrued sick time without delay.

Employee Notification Requirement:

• Employers must provide notices to employees including specific information about ESTA rights by March 23, 2025.

Disclaimer: This summary is provided for general informational purposes only and does not constitute legal advice. It is intended to offer a basic overview of the Earned Sick Time Law as it currently stands. Employers should consult with legal counsel or a qualified professional for advice regarding compliance with the law and for guidance tailored to their specific circumstances.