Michigan Expands its Earned Sick Time Law and Increases Minimum Wage

Through a series of legal wranglings, the Michigan Supreme Court has restored the Earned Sick Time Act (ESTA) and repealed the Paid Medical Leave Act (PMLA). The Court also restored the original Work Force Opportunity Wage Act (WOWA). Both laws go into effect February 21, 2025 to give employers time to make the required revisions to their work rules. The following is a summary of the more important elements of the laws.

Restoration of WOWA 

• The current minimum wage of $10.35 per hour increases to $12.48 per hour.
• Effective date is February 21, 2025.

Return to the ESTA

The Paid Medical Leave Act has been repealed so we go back to the Earned Sick Time Act. The goal is the same, ensuring employees the use of paid sick time, but there are important changes. The key points are as follows:

• Under the restored ESTA, an employee will be entitled to up to 72 hours per year of earned paid sick time.
• For smaller employers, which is considered a company that has less than 10 employees, the employees are entitled to accumulate 40 hours paid and 32 hours unpaid.
• The Act applies to all employees whether they are full or part-time, exempt, or non-exempt.
• Time is accumulated at a rate of one hour for 30 hours worked.
• The accrual begins at the date of hire or on February 21, 2025, whichever is later.
• The employer can require the employee to wait 90 days after the date of hire before using any accrued time.
• The accrued time can be carried over up to 72 hours.
• Uploading of the time is not required, but is certainly allowed.
• The accrued time does not have to be paid upon separation of employment.
• This time can be used for medical or psychiatric reasons.
• The employee can use the time for matters associated with domestic violence or sexual assault regarding themselves or a child. This includes attending counseling, relocation, obtaining legal assistance, or attending a meeting related to their child’s health or disability related to the abuse.
• If the use of time is foreseeable, the employee must give seven days’ notice of the intent to use the time.
• If it is not foreseeable, the notice must be given as soon as practicable.
• If more than three days are used, the employer can require medical documentation (a doctor’s note) at the employer’s expense.

Before you get too concerned regarding how your company is going to afford the paid time or manage the employees being off, an employer is in compliance with the Act if they have a paid time policy that allows for at least the same amount of time as provided for in the Act, and the time can be used for the same purposes. So, if you have a policy allowing five days (40 hours) vacation and four days (32 hours) sick time per year, your company is already in compliance. You may need to adjust the rules regarding the usage of that time.

Also, if your employees are working under a collective bargaining agreement (CBA) that isn’t in conformance, the CBA will remain in effect, but any new contract must be in conformance.

An employee can file suit if they feel their rights under the Act have been violated. The allowable damages includes double back pay, liquidated damages, and attorney fees. An employer is also subject to a $1,000 fine by the State of Michigan.

The rights under the Act must be provided to employees at the time of hiring or by February 21, 2025, whichever is later. A poster created by the State of Michigan must also be displayed. This poster is available on the Michigan.gov website.

Suzanne P. Bartos is a partner in our Livonia office where she focuses her practice on employment and labor law, insurance defense, municipal law, education law, and litigation.

She successfully defends civil rights, wrongful discharge, and discrimination claims in state and federal courts. She has defended governmental entities at both the grievance and arbitration level and has worked with a variety of administrative agencies and tribunals including the U.S. Equal Employment Opportunity Commission, Michigan Employment Security Commission, Michigan Wage and Hour Division, National Labor Relations Board and the Internal Revenue Service. She has also achieved outstanding results for clients in premise liability, breach of contract, collections, warranty disputes, and consumer protection. She may be reached at (734) 261-2400 or sbartos@cmda-law.com.