Disclaimer: This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.
Updated 3/5/2025
The Michigan Department of Labor and Economic Opportunity has published answers to frequently asked questions (FAQs) about the Earned Sick Time Act (ESTA) that will take effect on Feb. 21, 2025. The department has posted a required poster on its website, along with a recorded webinar discussing the law. Additional links and resources are provided throughout this article.
Earned Sick Time Act
The ESTA was originally presented to the Michigan Legislature in 2018 as a ballot measure. The Legislature adopted and later amended the law, significantly narrowing the employee leave rights it provided and renaming it the Paid Medical Leave Act (PMLA). The PMLA has been in effect since 2019.
Following litigation, the Michigan Supreme Court ruled on July 31, 2024, that the Legislature’s adopt-and-amend procedure violated the state constitution. The Court ordered that the ESTA—the original, more employee-friendly version of the law—go into effect Feb. 21, 2025.
Important Dates
July 31, 2024
The Michigan Supreme Court ruled that the PMLA was unconstitutional and the ESTA must be reinstated.
Feb. 21, 2025
The ESTA takes effect, and employers must provide required notice of employee rights under the law.
FAQs
The department has published FAQs about the ESTA, addressing issues such as:
Determining whether an employer meets the 10-employee threshold, which affects the required amount of paid earned sick time:
- Employers with 10 or fewer employees may limit an employee’s use of paid earned sick time to 40 hours per year and provide up to 32 additional hours of unpaid sick time if needed.
- Employers with 11 or more employees must provide up to 72 hours of paid earned sick time per year but are not required to allow employees to use more than this amount.
Employers may choose, per their written policy, whether earned sick time carries over to the next year or is paid out at the end of the benefit year.
The FAQ also covers:
- Definitions of “benefit year” and “family member”;
- Carryover and use limits;
- Frontloading;
- Notice and documentation requirements for the use of earned sick time;
- Anti-retaliation provisions of the ESTA; and
- Employer penalties.
Employers should note that in addition to displaying the required workplace poster, they must provide written notice of an employee’s rights under the ESTA at the time of hiring or on Feb. 21, 2025, whichever is later.
Employees successfully alleging violations of the ESTA may be awarded “all appropriate relief,” including earned sick time improperly withheld, any damages incurred by the employee, back pay and reinstatement.
Importantly, the FAQs note that there is a rebuttable presumption that an employer violated the act if it takes any adverse personnel action against an employee within 90 days after the employee engages in protected activity under the ESTA.
Failure to provide earned sick time is subject to a fine of $1,000, and failure to post the required workplace notice may result in a fine of $100 for each violation.
What You Should Do Next
On Feb. 21, 2025, the new ESTA paid sick leave benefits take effect. Employers should review the guidance and Michigan Department of Labor and Economic Opportunity statutes to ensure they are in compliance once this date comes.
Review the following resources to ensure you remain compliant (Disclaimer: these resources are pulled from and/or directly link to the Michigan LEO ESTA website and are subject to change at any time. Please visit the Michigan LEO ESTA website directly for the most up-to-date information):
Review All ESTA Guidelines to Ensure Compliance
Provide Written Notice to Employees
- Click here for a customizable letter/email template to notify your employees of their rights under the ESTA.
- Required ESTA Workplace Poster (for a version in Spanish, click here)
Update Your Employee Handbook and Written Policies
- Click here for a customizable policy template to include in your employee handbook to ensure clarity and compliance among your team
For additional compliance guidance or to learn more about our risk management services, contact us today via the form below.
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This blog post is provided by Van Wyk Risk Solutions for informational purposes only and does not constitute legal advice. Employers should consult with their legal counsel or HR advisors to ensure compliance with the Earned Sick Time Act and other applicable laws.