Employers with Michigan Employees Must Comply with Michigan Earned Sick Time Act Starting February 21, 2025

Lynn Vuketich Luther, Heidi N. Hartman and Jade L. Robinson
1/22/25

Woman reading holding cup.On February 21, 2025, employers with employees who work in Michigan must begin offering accrued sick time in compliance with the Earned Sick Time Act (ESTA).

Applies to Any Michigan Employer

Pursuant to administrative guidance interpreting the statute, ESTA applies to any employer, regardless of the employer’s physical location, with one or more employees who are physically located in Michigan. Therefore, both Michigan employers and employers in other states with employees who perform work in Michigan, whether remotely or otherwise, are required to comply with ESTA for those employees.

Right to Sue

The statute provides a private right of action for individuals to sue their employer for noncompliance.

Employers With 10 or More Employees

If an employer has 10 or more employees nationwide in 20 or more workweeks in the current or previous calendar year, the employer must provide Michigan employees with 72 hours of paid sick leave per 12 month period. The workweeks need not be consecutive and full-time, part-time and temporary employees, including those provided through a temporary service or staffing agency, are included when counting employees. ESTA hours for these employees accrue at one hour for every 30 hours worked.

Employers With 1 – 9 Employees

An employer is considered a “small business” if the employer has 1 - 9 employees nationwide. A “small business” employer must provide 40 hours of paid sick leave and an additional 32 hours of unpaid sick leave accrued at the same rate of accrual described above.

Accruing Time and Using Time

The 12 month period can be the calendar year or it can be another 12 month period set by the employer. Accrual begins on February 21, 2025 for current employees and upon commencement of employment for those hired after February 21, 2025.  Under the ESTA, all unused sick time carries over from year to year; however an employer is not required to permit an employee to use more than the annual allowed maximum time (paid or unpaid) in a 12 month period.

Employees must be permitted to use accrued ESTA leave for several reasons, including:

Paid Time Off Policies

The administrative guidance permits employers to modify their current PTO policies to comply with ESTA, or to create a separate bank of leave time.

Pending Legislation

Employers also should be mindful that there is pending legislation in the Michigan legislature that may result in further changes to ESTA before the February 21 effective date. 

Eastman & Smith’s Labor & Employment attorneys are available to help you with any questions regarding policy considerations and your next steps to comply with ESTA.

Should you have any questions about ESTA, please contact Ms. Luther, Ms. Hartman or Ms. Robinson.  

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   Disclaimer: This alert has been prepared by Eastman & Smith Ltd. for informational purposes only and should not be considered legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney/client relationship.