As you are all aware, the impending implementation date of the new earned sick time and minimum wage laws (ESTA) takes effect on February 21, 2025. The most recent FAQ from the Department of Labor and Economic Opportunity can be found here. For a comprehensive overview of the requirements and resources for compliance, we highly recommend the Michigan Chamber of Commerce’s toolkit that can be accessed freely here.
NAEDA has been working with the Michigan Chamber and is a coalition member of over 75 business groups pushing legislators to take action before the implementation deadline to make the law more workable. Two bills have been introduced in the opening days of the legislative session to do that. House Bills 4001 and 4002 address employers major concerns about the laws including:
- Exemptions for small businesses and businesses with existing paid leave policies that meet or exceed the Act’s requirements
- Notification of intended use of sick time and duration of use limits to half-day increments
- Frontloading of sick time to avoid tracking accrual for each employee
- Capping carryover of unused sick time from year to year
- Eliminating a private cause of action against employers
Today, both HB 4001 and HB 4002 were unanimously voted out of the House Select Committee on Protecting Michigan Employees and Small Businesses. The bills now move to the House Floor for a vote that is anticipated to occur next week sometime.
The Michigan legislature will need to act within the next 36 days to avoid a very confusing landscape for employers. NAEDA will keep dealers updated on the progress of these bills and what new requirements exist if they are passed.
If you have any questions or concerns, please contact the association office.
