Great Lakes Wire

Late in the evening of February 20, 2025, a bipartisan agreement was reached on the Earned Sick Time Act (ESTA), with the new provisions taking effect on February 21. The legislation was passed by both chambers around 11:30 p.m. and signed into law by Governor Whitmer the following day.

The negotiations over House Bill 4002 were conducted between House Republicans and Senate Democrats, who hold control in their respective chambers. During these discussions, Senate Democrats maintained their position against exemptions previously supported by Republicans for small businesses, part-time workers, and seasonal employees. Speaker Matt Hall (R-42) was recognized for his advocacy efforts on behalf of small businesses during these talks.

While the bill does not encompass all desired provisions from the National Federation of Independent Business (NFIB), it represents a significant improvement from previous iterations and offers increased flexibility. NFIB organized a webinar on February 24 to discuss the changes introduced in the new bill.

In addition to ESTA, Governor Whitmer also signed Senate Bill 8 earlier that week, which adjusts minimum wage regulations while preserving tipped wages for restaurant servers.

For more than six years, NFIB has actively opposed ESTA and advocated for maintaining tipped wages across various legislative sessions and court cases. Since July 31, 2024—when prior legislation was overturned by the Michigan Supreme Court—NFIB has continuously worked to make the laws more accommodating for small business owners.

NFIB plans to persist in its efforts to secure a small business exemption within this legislative session and future ones.

Additional resources related to these changes include a slide deck from NFIB's ESTA webinar, comparisons between original legislation and House Bill 4002, as well as FAQs provided by the Department of Labor and Economic Opportunity regarding earned sick time.