Starting February 21, 2025, Michigan’s Earned Sick Time Act (ESTA) will require all employers to provide paid sick leave to their employees, with the amount varying based on the employer’s size.
Key Provisions of the Earned Sick Time Act (ESTA):
- Effective Date: February 21, 2025.
- Employer Coverage: Applies to all employers in Michigan with one or more employees, except for those employed by the United States Government.
- Employee Eligibility: Includes salaried (both exempt and non-exempt) and full-time and part-time hourly workers.
- Accrual Rate: Employees accrue sick time at a rate of 1 hour for every 30 hours worked.
- Annual Sick Time:
- Employers 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.
- Employers with Fewer Than 10 Employees: Must allow at least 40 hours of paid sick time annually, plus an additional 32 hours of unpaid sick time to the extent leave is accrued.
- Carryover: Unused sick time can be carried over, but employers may limit annual use to no more than 72 hours.
- Permitted Uses: Employees can utilize earned sick time for various reasons, including personal or family member illness, medical appointments, or issues related to domestic violence or sexual assault.
- Protection from Retaliation: Employees have the right to pursue action if an employer interferes with or retaliates against their use of ESTA benefits, including through private action.
Additional Considerations:
- Waiting Period: Employers may require new employees to wait up to 90 days after hire to use accrued sick time, but accrual begins immediately upon hire, according to Varnum Law.
- Incremental Use: Earned sick time may be used in the smaller of hourly increments or the smallest increment of time used by the employer’s payroll system for absences or use of other time. SBA Michigan
- Documentation: Employers can only require documentation regarding the use of earned sick time when an employee takes leave for more than three consecutive days.
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