Great Lakes Wire

The National Federation of Independent Business (NFIB) has expressed approval for the bipartisan passage of House Bill 4002, which introduces significant administrative changes to the Earned Sick Time Act (ESTA). These changes are scheduled to take effect on February 21, 2025.

Amanda Fisher, NFIB Michigan State Director, stated, "We are thankful to the legislature for making several significant changes to ESTA that will make the law more manageable for small business owners. While this bill does not contain all of the provisions our members would like to see, we are aware of the political reality of split government and are especially grateful to Speaker Matt Hall who championed the cause of small business during negotiations."

Fisher further noted appreciation for Democratic lawmakers who supported HB 4002 despite opposition from big labor interests. However, she also expressed disappointment with Senate Democrats for blocking a full exemption for small businesses and seasonal employees. "NFIB will continue to fight for a small business exemption in this legislature and beyond," Fisher added.

The legislation is anticipated to be signed by Governor Whitmer without delay. It includes several measures aimed at assisting small businesses:

- Employers with ten or fewer employees must provide 40 hours of earned sick time annually.

- These employers have until October 1, 2025, to comply.

- The bill clarifies notification requirements and allows employers to implement written policies.

- Employers can frontload sick time instead of tracking accrual.

- A base wage can be set for variable wage employees excluding commissions and bonuses.

- Youth workers and unpaid interns are exempt from ESTA.

- The presumption of guilt upon complaint is eliminated.

- Employees lose the ability to directly sue employers over alleged violations.

- Sick time usage is limited to one-hour increments as a minimum.

- New business start-ups receive a three-year exemption from ESTA.