Earned Sick Time Act FAQs Updated

Mar 28, 2025

by Liz Gullett

As MLC’s Communications and Social Media Manager, Liz Gullett keeps clients informed and up-to-date on the goings on in Lansing and the Capitol.

The below post was written by MLC intern, Luke Bingaman.

The Michigan Department of Labor and Economic Opportunity (LEO) updated their list of frequently asked questions about the Earned Sick Time Act (ESTA) which took effect on February 21. This updated information can help provide a sense of clarity on how the changing legislation can impact workplaces and businesses across the state.  Additionally, LEO Deputy Director of Labor Sean Egan hosted a webinar on February 27th explaining all the new changes that ESTA will bring to those who attended. A recording of this webinar and the updated FAQ can be found here.

The changes that the Legislature made include the following:

  • Small Business, defined by having 10 or fewer employees, have until October 1st to meet ESTA standards.
  • Employees earn sick time at a rate of 1 hour of sick time per every 30 hours worked.
  • Sick time can be capped at 40 hours for small business and 72 hours for all other business in a 12-month period.
  • Employers are allowed to provide their employees with the max number of hours allowed at the beginning of the 12-month period rather than using the accrual method.
  • All employees hired after February 21st, 2025, may be required to work 120 hours before they begin to accrue sick leave hours(does not apply to frontloading method).
  • A PTO-Sick Time combination can be used to meet the ESTA hour amounts.
  • Employers are allowed to provide ESTA benefits and whatever increments up to an hour they would like.

Additionally, the ESTA made the following changes to Michigan Minimum wage laws:

  • $12.48 will remain the minimum wage, with the goal of reaching $15 by 2027.
  • Tipped minimum wage will slowly increase to 50% of the full minimum wage by 2031, $4.74 will remain the tipped minimum wage for the rest of 2025.

For any additional questions and more details on ESTA requirements and changes, visit the LEO information page here.

Michigan Legislative Consultants is a bipartisan lobbying firm based in Lansing, Michigan. Our team of lobbyists and procurement specialists provide a wide range of services for some of the most respected companies in America. For more on MLC, visit www.mlcmi.com or connect with us on LinkedIn and Twitter.

Recent Posts

House and Senate Honor the Ronald McDonald House Charities

House and Senate Honor the Ronald McDonald House Charities

The below post was written by MLC intern, Luke Bingaman. This year marks the 50th anniversary since the founding of the Ronald McDonald House Charities (RMHC). RMHC aims to help families and communities who are facing health issues by removing barriers to access and...

Firekeepers Revenue Sharing Tops $360 Million

Firekeepers Revenue Sharing Tops $360 Million

The below post was written by MLC intern, Luke Bingaman. Last week, Emerson Silvernail, Chief of Staff for State Representative Sarah Lightner, accepted a check on behalf of the State of Michigan for $18.5 million from the Nottawaseppi Huron Band of the Potawatomi...

Looking for older articles?

We’ve recently made improvements to our blog to provide a better user experience. If you’re searching for older posts, click here to search our archive.

Michigan Legislative Consultants

Michigan Legislative Consultants
110 W. Michigan Avenue
Suite 500
Lansing, MI 48933
517.372.2560
517.372.0130 fax

1001 Woodward Avenue
Suite 500
Detroit, MI 48226

MLC is proud to be the Michigan member of NASL