Key to remember:
Michigan Supreme Court reinstates original Earned Sick Leave law
08/14/2024
Changes take effect in February 2025
In a 4-3 decision at the end of July, the Michigan Supreme Court ruled that the state legislature violated the Michigan Constitution when it adopted, then changed, the Earned Sick Time Act ballot initiative.
For employers with employees in Michigan, this means the current Paid Medical Leave Act (PMLA), in effect since 2019, will be replaced by the original Earned Sick Time Act (ESTA), effective February 21, 2025.
Employers will need to switch from the PMLA to the ESTA, as they differ in the following ways:
| PMLA | ESTA (2/21/25) |
Employers covered | Employers with 50 or more employees | One or more employees |
Employee eligibility | Worked an average of 25 or more hours per week in the immediately preceding calendar year, and their primary work location is in Michigan (other exemptions) | Be engaged in service to an employer in the business of the employer |
Accrual rate | One hour for every 35 hours worked | One hour for every 30 hours worked |
Accrual cap | 40 hours per year | No express cap |
Leave usage cap | 40 hours per year | 72 hours pr year* |
Carryover cap | 40 hours | No express cap |
Frontloading | Employers may frontload 40 hours | No express frontload provision |
Reasons for leave | Employee or family member illness, injury, health condition, or preventative care; domestic violence or sexual assault; public health emergencies | Employee or family member illness, injury, health condition, or preventative care; domestic violence or sexual assault; public health emergencies; meetings at child's school/place of care related to child's health or disability; effects of domestic violence or sexual assault on the child |
Family members | Child, parent, spouse, grandparent, grandchild, and sibling | Child, parent, spouse, grandparent, grandchild, sibling, domestic partner, and any other individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship |
Increments | One-hour | Hourly increments or the smallest increment the payroll system uses to account other time off |
Leave reinstated upon rehire | Not required | Within 6 months of separation |
Documentation | Comply with usual and customary documentation requirements for requesting leave when using paid sick leave | Employee must be absent for more than three consecutive days before requiring documentation |
Retaliation | No provision | Employers may not retaliate or interfere with rights |
Existing policy for compliance | Yes, if the policy gives at least 40 hours of paid leave per year, which can include vacation, PTO, etc. | Only if the policy mirrors the amount, reasons, and accrual as ESTA |
*Employers with fewer than 10 employees may still cap leave usage at 40 hours. But if employees accrue more than 40 hours of sick leave in a year, they are entitled to use an additional 32 hours of unpaid leave in the year.
Questions remain, including ones about frontloading and caps. The Michigan Department of Labor and Economic Opportunity said it is currently reviewing the court’s decision and will publish information “to ensure a thorough understanding and smooth implementation of the court’s ruling.”
Reverting to the original Michigan paid leave provisions will give employees more benefits.
This article was written by Darlene M. Clabault, SHRM-CP, PHR, CLMS, of J. J. Keller & Associates, Inc. The content of these news items, in whole or in part, MAY NOT be copied into any other uses without consulting the originator of the content.
The J. J. Keller LEAVE MANAGER service is your business resource for tracking employee leave and ensuring compliance with the latest Federal and State FMLA and leave requirements.