In July 2024, the Michigan Supreme Court ruled that the legislature’s use of adopt and amend on a ballot proposal increasing the minimum wage and earned sick time laws was unconstitutional. As such, effective February 21, 2025, the laws under the proposal will take effect. In anticipation of the forthcoming changes to Michigan’s earned sick time laws for employees, the Department of Labor and Economic Opportunity held a webinar.
Key Points from the Webinar:
-
- For every 30 hours worked, an employee will accrue 1 hour of sick time.
- The new law applies to all employers with one or more employee(s), except those directly employed by the Federal government.
- It applies to part- and full-time workers, and all employees regardless of age.
- Unused time can be carried over to the next year, but employers can limit it to 72 hours.
- There is a wide range of allowable uses for paid sick time, including the employees’ physical or mental health, in addition to children and family members.
- Employers can front load the 72 hours, as long as they follow the other guidelines within the Act.
- Employers can continue to utilize an unlimited sick time/PTO policy as long as the company follows the other guidelines within the Act.
- Employees begin accruing time on day one, however, employers can implement a 90-day probationary period until they can begin using the paid sick leave.
- The Act does not obligate employers to create separate banks for sick time and vacation time.
Unknowns:
-
- The department is continuing to look into a few questions on the Act, including how this applies to companies who are not based in Michigan but have Michigan employees.
- The department will continue to put out information to the public as more questions arise and as they make determinations to current questions.
For more information, please visit Michigan.gov/EarnedSickTime. A recording of the webinar is available on the homepage, as well as the presentation slides.
