Starting February 21, 2025, Michigan employers will need to adhere to changes to paid sick leave requirements as the Earned Sick Time Act (ESTA) replaces the Paid Medical Leave Act (PMLA). This new legislation expands paid leave benefits to cover all employers, regardless of size, ensuring that Michigan workers have access to necessary time off for health-related needs.
Key Changes To Know Under ESTA
- Broader Coverage: Applies to all employers, regardless of size, unlike PMLA, which only covered businesses with 50+ employees.
- ESTA applies to work performed by employees who are physically located in Michigan, regardless of the employer location.
- Increased Paid Leave: Employees receive 72 hours of paid sick leave annually.
- Accrual Rate: 1 hour of paid sick leave per 30 hours worked.
- Usage Limits:
- Large employers (10+ employees): Can limit annual paid sick leave usage to 72 hours.
- Small businesses (<10 employees): Can limit paid sick leave to 40 hours, with an additional 32 hours of unpaid leave.
- Carryover Rules:
- Large employers may cap carryover at 72 hours of paid leave.
- Small employers may cap carryover at 40 hours paid and 32 hours unpaid.
- Use of Leave: Employees can use paid sick leave for their own illness, injury, or medical appointment, or for the illness, injury, or medical appointment of a family member.
- Expanded Family Definition: Covers individuals related by blood or association.
- Notice & Documentation:
- Employees must give seven days’ notice or as soon as possible.
- Documentation may be required after three consecutive days off.
The Earned Sick Time Act marks a major shift in paid leave policies across Michigan. While it increases benefits for workers, it also requires employers to adapt their policies and budget for additional paid leave costs. By planning ahead, businesses can ensure a smooth transition while maintaining workforce stability and compliance.
For more information on the legal updates, you can visit www.michigan.gov/wagehour