On Friday, February 21, the state’s Earned Sick Leave Act and Minimum Wage law were set to drastically change the landscape for employers and employees. Ahead of the changes, which were viewed as some of the most progressive in the country, the House and Senate passed legislation providing some relief sought by the business community. These changes include:
Earned Sick Time:
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- HB 4002 was introduced by Representative Jay DeBoyer (R-Clay).
- The House passed the bill last month. Following negotiations between the two chambers, the Senate passed an amended version on Thursday evening and the House voted to approve the changes.
- Businesses with 10 or fewer employees must provide and can frontload 40 hours of paid leave.
- Businesses with 11 or more employees must provide and can frontload 72 hours of paid leave.
- Employees employed under the Youth Employment Standards Act are excluded.
- Part-time employees will accrue one hour of leave for every thirty hours worked.
- An employee must provide seven days’ notice for a foreseeable absence, otherwise as soon as practicable. If requested, an employee has 15 days to provide documentation for an absence.
- A new small business would have three years before it would be subjected to the guidelines of the Act.
- To read the full bill, please click here.
Minimum Wage:
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- Senate Bill 8 was introduced by Senator Kevin Hertel (D-St. Clair Shores).
- The Senate passed the bill last week, and the House passed it on Wednesday.
- The legislation accelerates the state’s minimum wage increase to $15/hour by 2027. This shortens the original timeline which was set to take full effect in 2028.
- The hourly tipped wage will remain at 38% for the remainder of 2025. It would increase to 40% in 2026 and would continue to increase 2% annually until it reaches 50% in 2031, at which time it would be capped.
- It ties future minimum and tipped wage increases to economic conditions.
- To read the full bill, please click here.
Both bills will be sent to Governor Gretchen Whitmer for her consideration. The legislation was given immediate effect, so upon the governor’s signature, the above-outlined bills will become law.
The two bills are tie-barred and they both must be signed into law for either of them to take effect.
