Earned Sick Time Act reinstated in Michigan beginning Feb. 21, 2025
A Michigan Supreme Court ruling from July 2024 has reinstated the Earned Sick Time Act (ESTA). This legislation requires ALL Michigan employers to accrue employee sick time and takes effect Feb. 21, 2025.
Details of the ESTA include:
- Employees will accrue 1 hour of sick time for every 30 hours worked.
- For employers with less than 10 employees, an employee must be allowed to use 40 hours of paid sick time and 32 hours of unpaid sick time (72 hours total) to the extent leave has accrued.
- For employers with 10 or more employees, an employee must be allowed to use at least 72 hours of paid sick time per year to the extent leave has been accrued.
- If an employer currently offers paid leave, the current plan may be sufficient to meet the requirements of this act.
- Accrued hours are not required to be paid out upon termination.
- The ESTA outlines how and when this sick time can be used by the employees.
The State of Michigan website link below includes a pre-recorded webinar explaining this act, slides from that webinar, an overview brochure, and the full ESTA: https://www.michigan.gov/leo/bureaus-agencies/ber/wage-and-hour/paid-medical-leave-act
Some payroll processing partners may be offering tools to track the accrual, but there will most likely be additional costs involved with those services. For more information, please contact your vendor or your ShindelRock tax professional.