Great Lakes Wire

On January 9, following the Republican takeover of the State House, a new bill, House Bill 4002, was introduced to amend the Earned Sick Time Act (ESTA) before its implementation on February 21, 2025. This move comes after a Michigan Supreme Court ruling concerning "adopt and amend."

The House Select Committee on Protecting Michigan Employees and Small Businesses has scheduled hearings for this bill and another related bill, HB 4001, which seeks to reinstate the tip credit for servers. These hearings are set for January 14 and January 16, 2025. Amanda Fisher, NFIB State Director, and Ann Chaffee, an NFIB member and owner of Maurer’s Sanitary Cleaners in Lansing, testified in support of these changes on January 14.

House Bill 4002 proposes several significant amendments:

- Exempting employers with fewer than 50 employees

- Exempting part-time and seasonal workers

- Allowing sick time to be front-loaded or included with holidays and vacation

- Aligning notification procedures with regular absence policies

- Removing the rebuttable presumption regarding complaints

- Eliminating the option for employees to directly sue employers

It is noted that these provisions may not appear in final legislation due to political dynamics involving the Democrat-controlled Senate and governor's office.

In response, Senate Democrats introduced Senate Bill 15. While it makes few substantial changes beneficial to small business owners, its introduction indicates a willingness to engage in discussions about ESTA.

NFIB hopes that HB 4002 will soon pass in the House so negotiations can proceed with the Senate before February 21. Meanwhile, small business owners are advised to prepare for compliance with ESTA as currently written if legislative changes do not occur.

NFIB remains committed to advocating for modifications to what it describes as a "small business killing law."