MML#1 – What Michigan’s New Sick Time Law Means for Michigan Workers and Employers
(Crystal A. Proxmire, March 22, 2025)
Lansing, MI – While many have heard about Michigan’s new Sick Pay law, the details are what’s crucial for employers to be compliant and workers to claim the benefits which are now their right.
On March 18, Sean Egan from Michigan’s Department of Labor and Economic Opportunity was a featured speaker at Michigan Municipal League’s Capital Convention. His office is tasked with enforcing the new laws, meaning that if anyone has a complaint about an employer failing to honor them, that’s where they can turn. Complaints can be made at www.michigan.gov/wagehour or by calling 1-855-4MI-WAGE (1-855-464-9243)
The Earned Sick Time Act (PA 2 of 2025) came about because of citizen-led efforts to get those issues on the ballot in 2018. The subsequent legislation was a compromise between political parties with Republicans and Democrats taking business perspectives into consideration, with less robust gains for workers than voters had intended.
Nonetheless, there are changes in the law guaranteeing paid time off/ sick leave for both full and part time employees.
Egan’s presentation to elected officials and local government administrations focused on Earned Sick Time because local governments are likely to have both full and part time employees.
Implementation of Earned Sick Time Act requirements seem pretty straightforward.
First employers must know if they are considered small business employers or not. “Small businesses” are those with 10 or fewer employees, and the regulations are slightly more relaxed for them.
The act requires employers to offer Paid Time Off (PTO) which can be used for sick time or personal time. It also protects employees from retaliation for using their PTO.
One might imagine an employer being rude to, or penalizing an employee by cutting hours or privileges. But this also means that companies that offer bonuses for good attendance cannot use PTO against the employee in determining attendance-based rewards.
As far as implementation of PTO policy, there are two methods for calculating the amount of time earned.
The Accrual Method requires employers to track the number of hours worked. The state requires 1 hour of PTO for every 30 hours worked. For small businesses, it’s one hour for every 40 hours worked. There is a limit of 72 hours of PTO per year, or 40 hours of PTO per year for small business employees. Businesses may offer more if they like, but the law requires up to these amounts.
Because there is a cap, it may be easier for employers to use the second method, which is Front-loading.
Front-loading makes the assumption that full time employees have the full 72 or 40 hours at the beginning of any one year period. Part time employees would receive an amount proportional to their part time hours.
This method makes it easier for employers who may not want to spend their resources tracking hours and calculating accumulated PTO.
The act also gives an 120 day waiting period for distributing PTO hours for new hires.
Employers may use any 12 month period for distributing PTO hours. For example, they can use a calendar year, a fiscal year, or tie the start date to each employees hiring date.
The act also provides responsibility for the employees in that employers may require up to seven days notice for forseeable leave, though emergency sick time is possible without notice. Employers should also note that PTO can be used in one hour increments, so partial days off are allowed by law.
All employers – including businesses, nonprofits, and local governments are required to follow the new law. Only Federal government employees are not covered. The date of implementation was Feb. 21. Small businesses must comply by Oct 1.
Learn more at www.michigan.gov/earnedsicktime
This story is part of a series of stories from the Michigan Municipal League Capital Conference which took place in Lansing on March 18-19. Learn more about MML at https://mml.org/. Read more Oakland County Times stories from MML trainings and conferences here.
