In July, the Michigan Supreme Court issued a ruling that will bring significant changes to the state’s sick time laws. Starting February 21, 2025, Michigan employers must comply with the new Michigan Earned Sick Time Act, which replaces the previous MI Paid Sick Leave Act. The State of Michigan still needs to make certain decisions and issue clarifications for employers before the new law can be fully implemented. Below, we’ll break down what’s new and why it’s important for your business to stay compliant.

What’s Changed?

Here’s a quick rundown of the key changes:

1. All Employees Covered: This law now applies to all employees—both exempt and non-exempt. The previous law only covered non-exempt employees.
2. Expanded Employer Scope: The law now impacts employers with one or more employees (down from 50 employees).
3. Broader Definition of Family: “Family members” now includes domestic partners and their family, as well as anyone related by blood or affinity whose close association is like immediate family.
4. Faster Sick Time Accrual: Employees now earn 1 hour of sick time for every 30 hours worked, down from 35 hours, and can accrue and use up to 72 hours per year (previously capped at 40 hours).
5. Different Rules for Small Businesses: For businesses with fewer than 10 employees, employees can use up to 40 hours of paid sick time and accrue and use up to 32 unpaid hours.
6. Exempt Employee Calculation: Employers must calculate sick time based on a 40-hour workweek for exempt employees unless they have a documented, regular schedule of fewer than 40 hours.
7. Sick Time Rollover: Unused accrued sick time now rolls over year to year, allowing employees to bank time for future use. (But employers can cap so that no more than 72 hours can be used each year.)
8. Additional Uses for Sick Time: Employees can use earned sick time for school or childcare meetings about the health or wellness of their child.
9. Smaller Sick Time Increments: Employees can use their sick time in the smallest increment allowed by the employer’s payroll system. This offers more flexibility than the previous 1-hour minimum.
10. Rehired Employee Protection: If an employee is rehired within 6 months, any previously unused sick time must be reinstated.
11. New Posting and Notice Requirements: Employers must now provide both a poster and written notice of these rights in English and Spanish (or any other language spoken by 10% or more of employees).
12. Longer Record-Keeping: Employers must now retain records for 3 years (up from 1 year).
13. No Replacement Worker Requirement: Employers cannot require employees to find a replacement worker to cover their shifts as a condition of using sick time.
14. Advance Notice: If the need for sick time is foreseeable, employers can request up to 7 days advance notice.
15. In some cases, employers can request documentation. If the physician’s office charges the employee a fee (like a copay) to complete the documentation, the employer must reimburse the employee.
16. In some cases, the use of sick time will need to be coordinated with FMLA.

Why It Matters

These changes mean that every employer with employees working in Michigan, even those with only one employee, needs to review and update their current sick leave policies. With increased accrual, expanded family and use definitions, and new posting and record-keeping requirements, it's vital to ensure that your business is compliant with the new law by February 2025.

Failing to comply can result in penalties and negatively affect employee satisfaction and retention. It’s also important to stay informed as the Michigan Department of Labor and Economic Opportunity clarifies additional details about the law.

Effective Date and What’s Next

The Michigan Earned Sick Time Act takes effect on Monday, February 21, 2025, and there’s a lot to consider to ensure your business remains compliant. With the most current information at our fingertips and extensive experience in crafting customized employment policies, we can help you navigate these changes with confidence. Our policies are designed to protect employers while clearly communicating essential information to employees.

If you want to be prepared and avoid any missteps, reach out to us today—we’re here to make the process seamless for you.

Get More Information

If you haven’t done so already, CLICK HERE to fill in your info, gain access to free reports, and join our list to receive notification of future posts, products, and events.  Join now so next week’s post will come right to your inbox!

Please Share

If you know someone who would like this article, please feel free to share it.  This will help us reach more people who can benefit from these ideas or our support.

If there are any topics that you'd like to read more about, please email me directly at jodi@people-mattershr.com.

We’d Love to Help

People Matters gives support to business owners and leaders in all areas of human resources management. HR is what we at People Matters love to do! We help our clients create great workplaces that engage employees and produce better business results.

Please give me a call at 517-925-8257 or visit our website at www.people-mattershr.com for more information.