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  • Key Points for Earned Sick Time  

    • Frontloading Paid Sick Time: As an alternative to the accrual method, employers can choose to frontload at least 72 hours of paid sick time for immediate use each year, or 40 for a small business, which eliminates the requirement for carryover or accrual tracking for full-time employees. 
    • Frontloading Part-time Employees: As an alternative to the accrual method, employers may frontload paid sick time for part-time employees as well, with a prorated amount, subject to specific notice and true-up requirements. 
    • Accrual Method: If choosing the accrual method, employees accrue 1 hour of paid sick time for every 30 hours worked, and unused paid sick time rolls over up to 72 hours.  Employers may limit the use of earned sick time to 72 hours, or 40 for a small business, in the 12-month period.
    • New Hire Waiting Period: If using the accrual method, employers may have a policy for new employees hired on or after 2/21/25 requiring these employees to wait up to 120 days before using accrued sick time. Employees accrue earned sick time during this waiting period.  If frontloading, hours are available for immediate use. 
    • Small Business Compliance: Small business is defined as an employer having 10 or fewer employees. Small businesses have until October 1, 2025, to comply with ESTA requirements. 
    • PTO Policy: Employers can use a combined paid time off (PTO) policy to meet ESTA requirements, as long as the total paid leave meets or exceeds the necessary amounts and may be used for the same purposes. 
    • Hourly Rate: For ESTA purposes, an employee's hourly rate is their normal hourly wage or base rate and excludes overtime, holiday pay, bonuses, commissions, tips, etc. 
    • Enforcement: The Department of Labor and Economic Opportunity (LEO) is responsible for enforcing ESTA. 
    • Sick Time Increments: Employers may choose to use either one-hour increments or the smallest increment for tracking sick time usage. 

  • Key Points for Minimum Wage 

    • Tipped minimum wage: Senate Bill 8 gradually increases the minimum cash wage for tipped employees from 38% of the full minimum wage to 50% of the regular minimum wage by 2031.
    • Wage changes: Tipped minimum wage is $4.74 for the rest of 2025.
    • Regular minimum wage: Senate Bill 8 keeps the minimum wage to $12.48 starting Feb. 21, reaching $15 by 2027, and adjusts for inflation after that.

  • House Bill 4002 of 2025

    On February 21, 2025, Michigan enacted House Bill 4002, amending the Earned Sick Time Act. This legislation modifies the requirements for employers to provide paid sick time to employees. Notably, it exempts small businesses with 50 or fewer employees from these mandates. The bill also outlines accrual rates, usage limits, and acceptable reasons for taking paid sick leave. Employers are required to inform employees about their rights under this act. For detailed information, refer to the full text of the bill.

    (Public Act 2 of 2025)

  • Senate Bill 8 of 2025

    Senate Bill 0008 could have an impact on our community. Click the link below to read the full bill text and track its progress in the Michigan Legislature. 

    (Public Act 1 of 2025)

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