Great Lakes Wire

While the Earned Sick Time Act (ESTA) became effective for employers with more than 10 employees on February 21, 2025, smaller businesses have until October 1, 2025, to comply. Employers with 10 or fewer employees will need to provide earned sick time starting October 10, 2025, with usage limited to 40 hours per year. Employees accumulate one hour of sick time for every 30 hours worked.

The National Federation of Independent Business (NFIB) advocated for a full exemption but succeeded in removing the initial requirement of 32 unpaid hours from the original legislation. A business is classified as "small" if it employs no more than ten individuals, including full-time, part-time, and temporary workers. If an employer reaches or exceeds eleven employees for at least twenty workweeks within the current or previous calendar year, it cannot be considered a small business again until it meets the specified criteria.

Resources provided by NFIB and the Michigan Department of Labor and Economic Opportunity (LEO) Wage and Hour Division are available online. For inquiries, contact NFIB Michigan State Director Amanda Fisher or reach out directly to Wage and Hour.

NFIB collaborated with other business groups, Speaker Hall, and Republican members of both legislative chambers to modify petition-initiated legislation established by the Michigan Supreme Court. The amendments include clarifying notification requirements by allowing written policies from employers; permitting employers to frontload time instead of tracking accrual; establishing a base wage that excludes commission and bonuses for variable wage employees; exempting youth workers and unpaid interns; eliminating presumptions of guilt upon complaints made to the department; and removing employees' ability to sue employers directly over alleged violations.

Despite these adjustments being steps toward improvement, further changes are needed to provide clarity for employers and relief for small businesses. NFIB remains committed to advocating for a complete exemption for small businesses under ESTA after seven years of effort.