Michigan Amends Earned Sick Time Act: Key Compliance Considerations

Michigan Amends Earned Sick Time Act: Key Compliance Considerations

Felicia S. O’Connor of Foley & Lardner highlights changes to Michigan’s Earned Sick Time Act (ESTA) that took place on February 21, 2025, when Michigan Governor Gretchen Whitmer signed into law the amendments, preventing the implementation of more burdensome provisions that were set to take effect. 

According to the article, these amendments, effective immediately, provide greater flexibility for employers while maintaining employee sick leave protections. Key changes include modifications to accrual limits, frontloading options, waiting periods, PTO integration, and compliance requirements.

Under the amended ESTA, the accrual rate remains one hour of sick leave per 30 hours worked, with large employers able to cap usage at 72 hours annually. Small employers may cap accrual at 40 hours of paid leave but are no longer required to provide an additional 32 hours of unpaid leave. Frontloading is now explicitly allowed. Employers can provide 72 hours (or 40 hours for small employers) at the beginning of the year without tracking accrual or requiring carryover. Part-time employees’ sick leave can also be frontloaded based on expected work hours.

Employers may impose a 120-day waiting period for new employees using accrued sick leave, but this does not apply to frontloaded leave. Sick leave can now be integrated into a PTO policy, provided it meets ESTA requirements. Employers must compensate sick leave at the employee’s regular hourly wage but are not required to include overtime, bonuses, or gratuities.

Notice requirements have also been clarified: foreseeable leave requires seven days’ notice, while unforeseeable leave must be reported as soon as practicable or per company policy. Employers cannot deny leave if they fail to provide a written policy. Documentation may be requested after three consecutive sick days, with employees given 15 days to submit proof.

Employers should promptly update their sick leave policies, communicate changes to employees within 30 days, and ensure compliance, particularly as employees become aware of these new Earned Sick Time Act provisions.