08/28/2024
Democrats are trying to ruin small businesses in Michigan!
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STATE OF MICHIGAN DETAILS SICK LEAVE CHANGES FOR BUSINESSES
Tuesday the Michigan Department of Labor and Economic Opportunity (LEO) held an important webinar regarding the Earned Sick Time Act and changes that are coming in February for all businesses. The law is scheduled to take effect on February 21, 2025, along with changes to Michigan’s minimum wage. The State says it is still seeking clarity on the minimum wage changes, but is providing updates on the sick time changes. The Better Business Bureau feels it is important that all businesses be up to date on these significant changes.
The 47 minute long webinar can be found here: https://www.youtube.com/watch?v=PUlJ4zwsjjI&t=1s. The first 12 minutes cover important information about the Earned Sick Time Act, the remaining time is Q and A.
LEO is regularly updating a page dedicated to this topic and a FAQ section that can be found at https://www.michigan.gov/leo/bureaus-agencies/ber/wage-and-hour/paid-medical-leave-act
Some of the information shared in the webinar includes:
• The changes take effect February 21, 2025
• Applies to ALL employers in Michigan with 1 or more employees (except workers employed directly by the federal government).
• Covers full and part time workers, both salaried and hourly.
• Employees accrue sick time at a rate of 1 hour for every 30 hours worked.
• Businesses with 10 or more employees must allow at least 72 hours of paid sick time per year to be used to the extent the leave is accrued.
• Businesses with fewer than 10 employees must allow at least 40 hours of paid sick leave annually, plus an additional 32 hours of unpaid sick time to the extent leave is accrued.
• Employees are allowed to carry over unused sick time.
• Employers are allowed to limit annual use of sick time to no more than 72 hours per year.
• If they wish to, employers are allowed to “front load,” sick time, allowing employees to use the time before it has been officially accrued.
• The law allows employees to take sick leave for a number of specific reasons outlined in the law.
• Employers can continue offering a combined PTO bank (vacation and sick time together) as long as the amount of PTO provided is, at a minimum, 72 hours (40 hours for employers with fewer than 10 employees) and the policy allows for time to be taken for any reason allowed under the Earned Sick Time Act.
It is important to note that LEO is still working through this law and the changes to minimum wage, and will be providing updates as we get closer to February 21. It is also possible that lawmakers will make changes to these law before they go into effect. But until that happens it is important for businesses to prepare based on the law as it stands now. The Better Business Bureau will continue to monitor these changes and will provide you updates as they occur.
