New Sick leave policy affecting Michigan Employers

The new Earned Sick Time Act (ESTA) policy affecting Michigan Employers is slated to go into effect on February 21, 2025. The new ESTA policy affects all Michigan Employers with 10 or more employees. Some of the key provisions to be noted are as follows:

• Employees may accrue up to 72 hours of paid earned sick time per year.

• Unused sick time rolls over each year and there is no cap on accruals. 

• An Employer may enact a policy limiting sick time usage to 72 hours a year.

• Employers are not required to pay out unused sick time.

• Employees separated from employment for 6 months or less maintain all accrued earned sick time prior to the separation and begin accruing additional hours upon re-employment.

• An employer may enact a policy requiring a new employee to wait until the 90th calendar day after commencing employment before using accrued earned sick time.

• The law covers employees physically working in the state, including those working remotely from Michigan and reporting to an office in another state.

• Employees must accrue one hour of paid earned sick time for every 30 hours worked. Accrual at this rate begins on February 21 for existing employees (on top of any existing paid sick leave accrual) and at hire for new employees thereafter.

• Salaried workers with no fixed hours are presumed to work 40 hours a week for accrual purposes. 

• An accrual year can be any 12-month period; however, most Employers will use the calendar year for administrative convenience.

Posting and notification requirements:

• Employers 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. Required notice contents can be found at www.michigan.gov/wagehour.

• Employers are also required to display a poster at the place of business containing specific rights listed in the ESTA. The Department shall create the poster and can also be found at www.michigan.gov/wagehour.

Reasons when the sick time can be used:

An Employer shall permit an employee to use the accrued earned sick time for any of the following reasons:

• The employee’s or the employee’s family member’s mental or physical illness, injury, or health condition; medical diagnosis, care, or treatment of the employee’s or the employee’s family member’s mental or physical illness, injury, or health condition; or preventative medical care for the employee or the employee’s family member.

• If the employee or the employee’s family member is a victim of domestic violence or sexual assault, for medical care or psychological or other counseling for physical or psychological injury or disability; to obtain services from a victim services organization; to relocate due to domestic violence or sexual assault; to obtain legal services; or to participate in any civil or criminal proceedings related to or resulting from the domestic violence or sexual assault.

• For 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.

• For closure of the employee’s place of business by order of a public official due to a public health emergency; for an employee’s need to care for a child whose school or place of care has been closed by order of a public official due to a public health emergency; or when it has been determined by the health authorities having jurisdiction or by a health care provider that the employees 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, regardless of whether the employee or family member has actually contracted the communicable disease.

Newsletter By:
Santosh R. Somi Reddy.