Michigan Amends New Earned Sick Time Act, Future Minimum Wage Increases

As you know, Michigan enacted a new Earned Sick Time Act on February 21, 2025. The state legislature has now passed several (mostly) employer-friendly amendments to the Act, including the following:

  • Employers with 10 or fewer employees have until October 1, 2025 to comply with the Act.

  • New businesses are not required to comply with the Act until 3 years after the date that the employer first employs an employee.

  • The definition of “employee” does not include any of the following:
    • An individual employed by the United States government.
    • An individual who works in accordance with a policy of an employer if both of the following conditions are met: (A) The policy allows the individual to schedule the individual’s own working hours. (B) The policy prohibits the employer from taking adverse personnel action against the individual if the individual does not schedule a minimum number of working hours.
    • An unpaid trainee or unpaid intern.
    • An individual who is employed in accordance with the youth employment standards act.

  • Covered “family members” do not include individuals related by affinity, but do include an individual whose close association with the employee is the equivalent of a family relationship.

  • Employers with 10 or fewer employees must only provide covered employees with a maximum of 40 hours of paid earned sick time. They do not have to provide an additional 32 hours of unpaid leave.

  • Employers who frontload earned sick time are not required to allow employees to carryover unused leave.

  • Employees may be required to wait until 120 calendar days after commencing employment before using accrued earned sick time (the previous limit was 90 days).

  • Upon the employer’s request, for earned sick time of more than 3 consecutive days, an employee must provide the documentation to the employer not more than 15 days after the employer’s request.

  • Employers must reinstate any unused sick time if rehired within 2 months of separation (previous length was 6 months) unless the value of the sick pay was paid out at time of termination or transfer.

  • If the employee’s need for the earned sick time is not foreseeable, an employer may require the employee to give notice of the intention in either of the following manners:
    • As soon as practicable.
    • In accordance with the employer’s policy related to requesting or using sick time or leave if both of the following are met: (i) On the date of the employee’s hire, on the effective date of the 2025 amendatory act that added this subparagraph, or on the date that the employer’s policy takes effect, whichever is latest, the employer provides the employee with a written copy of the policy that includes procedures for how the employee must provide notice. (ii) The employer’s notice requirement allows the employee to provide notice after the employee is aware of the need for the earned sick time.

You can access the amended Act here.

Additionally, Michigan has once again amended the state’s future minimum wage increases, as follows:

  • February 21, 2025: $12.48 per hour (current);

  • January 1, 2026: $13.73 per hour; and

  • January 1, 2027: $15.00 per hour.

The minimum wage will thereafter see annual inflation adjustments based on the Consumer Price Index.

Click here for more information from the state on minimum wage.

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