Michigan’s Earned Sick Time Act (ESTA) is set to take effect on February 21, 2025, introducing significant changes to employee sick leave entitlements across the state. This article delves into the specifics of ESTA, its legislative journey, and its implications for both employers and employees.
What Is The Earned Sick Time Act?
The Earned Sick Time Act (ESTA) mandates that all Michigan employers provide earned sick time to their employees. Key provisions include:
- Accrual Rate: Employees accumulate 1 hour of sick time for every 30 hours worked.
- Usage Limits:
- Employers with 10 or more employees Must offer up to 72 hours of paid sick time annually.
- Employers with fewer than 10 employees: Required to provide up to 40 hours of paid sick time and an additional 32 hours of unpaid sick time each year.
- Carryover: Unused sick time carries over to the next year, but employers can cap annual usage at 72 hours.
- Permissible Uses: Sick time can be utilized for personal or family health needs, including mental and physical illnesses, medical appointments, and preventive care. It also covers situations arising from domestic violence or sexual assault, such as seeking medical attention, counseling, relocation, or legal services. Additionally, employees can use sick time for meetings at a child’s school related to health or disability matters.
Other Things To Know
Who Qualifies as a Family Member?
Under Michigan’s Earned Sick Time Act (ESTA), employees can use their accrued sick time to care for various family members. The law defines “family member” broadly to include:
- Immediate family: Child, parent, spouse, grandparent, grandchild, and sibling
- Domestic partners: Recognized as family members under ESTA
- Other close relationships: Any individual related by blood or affinity whose close association with the employee is equivalent to a family relationship
This inclusive definition ensures that employees can take time off to care for not only traditional family members but also those who function as family in their daily lives.
Employee Sick Leave Benefits
ESTA mandates that employers provide paid sick leave, with accrual based on hours worked:
- Accrual Rate: Employees earn 1 hour of paid sick leave for every 30 hours worked
- Large Employers (10 or more employees): Employees can accrue up to 72 hours of paid sick leave annually
- Small Employers (fewer than 10 employees): Employees are entitled to 40 hours of paid sick leave plus an additional 32 hours of unpaid leave per year
- No Show: employees can no call/no show for three days without the employer requesting a reason.
- No discipline or retaliation against an employee who no calls/no shows for three days is permitted.
- Only after three days can an employer request reasonable documentation for the sick leave
Where Did ESTA Start?
In 2018, Michigan’s legislature adopted the Earned Sick Time Act to preempt a ballot initiative. The law was amended and renamed the Paid Medical Leave Act (PMLA) shortly thereafter. The PMLA applies only to employers with 50 or more employees and mandates up to 40 hours of paid sick leave annually.
In July 2024, the Michigan Supreme Court ruled that the “adopt and amend” strategy employed in 2018 was unconstitutional, thereby reinstating the original ESTA. This decision means that the broader provisions of ESTA will come into effect on February 21, 2025.
When Does Esta Take Effect?
As of now, ESTA is scheduled to become law on February 21, 2025. However, recent legislative activities indicate potential modifications:
- House Bill 4002: Introduced to provide clarifications on time accruals, employee notice requirements, sick time pay rates, and to exempt certain categories of workers, such as independent contractors and part-time employees.
- Senate Bill 15: Proposes similar adjustments to ESTA, aiming to address concerns from both employers and employees.
Employers are advised to monitor these developments closely and prepare to comply with the provisions as they currently stand while remaining adaptable to potential changes.
Did the Michigan Earned Sick Time Act Pass?
Yes, the Michigan Earned Sick Time Act was initially passed in 2018. Although it was subsequently amended and replaced by the Paid Medical Leave Act, the original ESTA has been reinstated following the Michigan Supreme Court’s 2024 ruling. It is now set to take effect on February 21, 2025.
What Employers and Employees Need To Know
Employers should review and, if necessary, update their sick leave policies to ensure compliance with ESTA’s requirements. This includes adjusting accrual rates, usage limits, and permissible uses of sick time. Employees should familiarize themselves with their rights under ESTA to fully benefit from its protections and entitlements. Other items Employees should be aware of:
- There is no payout for the accrual of sick time upon termination or separation, meaning there is no change to the company’s liabilities.
- Posters MUST be posted at the place of employment for employer’s policies that adhere to the new ESTA law.
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