The Michigan Supreme Court is leaving the 2018 Paid Medical Leave Act in 2024. The new Earned Sick Time Act (ESTA) will come into effect on February 21, 2025, earmarked by multiple pro-worker changes. Please read below for a breakdown of Michigan’s new leave law.
Previously, only businesses with more than 50 workers were covered. Now, the Supreme Court has determined that all private companies are covered. The new Earned Sick Time Act will apply to all workers engaged in service to a business in Michigan.
The reasons for use have also been expanded. Before, designated uses outside of the worker’s own illness were limited to the closure of a worker’s workplace due to a public health emergency, the closure of a worker’s child’s school due to a public health emergency, or when health authorities determine that the worker’s presence in the community would jeopardize the health of others due to their exposure to a communicable disease.
Under this ruling, the reasons have been further broadened to include attending meetings at a child’s school or place of care that are related to the child’s health, disability, or the effect of domestic or sexual violence on the child.
Under the Paid Medical Leave Act (PMLA), workers accrued 1 hour of earned sick time for every 35 hours worked. Beginning in February 2025, workers will accrue paid sick leave faster under the new ESTA than they did under the PMLA.
Under the ESTA, workers will accrue 1 hour for every 30 hours worked. The ESTA does not have an express accrual cap; there is an annual usage cap of 72 hours per year compared to the cap of 40 under the PMLA. The ESTA’s 72-hour usage cap is among the higher usage caps nationwide.
Michigan intends to be at the forefront of allowing workers to both accrue and carry over earned sick time. Workers will be able to carry over all 72 hours of their paid leave when the ESTA takes effect. However, they may only use 72 hours per year due to the cap on annual usage.
While some parts of the Act remain unclear, Michigan has certainly made progress in enacting pro-worker leave laws. With expanded coverages, reasons for use, and one of the highest usage caps nationwide, Michigan is ensuring that workers can take the time they need, while still receiving pay.
If companies would like to have their own PTO policies and comply with the Act, the business must provide other paid leave in at least the same amounts, that may be used for the same purposes and under the same conditions as those in the ESTA.
For the past 15 years, TCWGlobal has been committed to ensuring our clients stay up-to-date and compliant with the latest regulations. Using our policy knowledge and understanding of a business’ employment needs, TCWGlobal is ready to lead clients through the ever-growing Earned Sick and Safe Time landscape.
If you need assistance with your Earned Sick and Safe Time policies, compliance, or other employment needs, please contact our global support team at (858) 810)-3000 or email us at hello@tcwglobal.com, and we will get your questions answered!
More information on this employment law update can be found here.