Michigan’s Earned Sick Time Act (ESTA)

Michigan’s Earned Sick Time Act (ESTA) is scheduled to go into effect on Friday February 21, 2025. With only two weeks to go, employers are strongly encouraged to stay the course to ensure compliance while also staying alert to upcoming changes that may arise. House Bill 4002 (HB 4002) was previously passed by the House of Representatives but has ways to go before being signed off by the Governor. If passed, as it stands, HB 4002 provides amendments that make the requirements under the Act more clear and feasible. This includes, but not limited to: clarity on workers who are exempt from ESTA; exemption for businesses with less than 50 employees; exemption from tracking and rollover if employer frontloads hours; limiting accrued hours for rollover each year; and more.

The Department of Labor and Economic Opportunity (LEO) has put together a FAQ to assist employers with implementation. This is an excellent resource to review as you evaluate your business and assess what changes, if any, are necessary.

Employers are also required to display the ESTA poster in a visible location within their business. You can download a current copy of the poster here.

While we await further guidance, we recommend you familiarize yourself with the current state of ESTA and reach out to your legal counsel regarding your specific policies.

As always, reach out to MRPR if we may be of further assistance.

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