Great Lakes Wire

A legislative effort is underway to amend Michigan's Earned Sick Time Act (ESTA), scheduled to take effect on February 21, 2025. The introduction of House Bill 4002 on January 9, the day following the Republican takeover of the State House, proposes significant changes to ESTA following a Michigan Supreme Court decision related to "adopt and amend."

The House Select Committee on Protecting Michigan Employees and Small Businesses has organized hearings for this bill alongside House Bill 4001, which is set to reinstate the tip credit for servers. These sessions are planned for January 14 and January 16, 2025. Amanda Fisher, State Director for the National Federation of Independent Business (NFIB), and Ann Chaffee, owner of Maurer’s Sanitary Cleaners, voiced their support during a committee hearing on January 14.

House Bill 4002 aims to introduce several changes, including exemptions for employers with fewer than 50 employees and part-time or seasonal workers. It proposes modifications to the calculation of sick time, allowing it to be front-loaded and to include holidays and vacation. Additionally, the bill would adjust notification procedures to match standard business absence policies and eliminate certain legal presumptions and the current provisions allowing employees to sue employers directly.

However, due to the political landscape, there is uncertainty about the eventual composition of the final legislation, as Democrats control the Senate and governor's office. The Senate's move to introduce Senate Bill 15 indicates a willingness to engage in discussions, but it proposes few changes beneficial to small business owners.

NFIB remains hopeful that the House will advance HB 4002 promptly, facilitating negotiations with the Senate to finalize the legislation before the approaching February deadline. Meanwhile, small businesses are advised to prepare to comply with the current version of ESTA in case legislative updates are not enacted in time.

NFIB continues to inform its members and advocate for adjustments to what it considers a potentially harmful law for small businesses. The organization encourages stakeholders to communicate with their legislators about the importance of amending ESTA.