Hello!

On February 21, 2025, the new Earned Sick Time Act (ESTA) went into effect.

The Michigan Department of Labor and Economic Opportunity (LEO), as the agency tasked with enforcement of the new act, will be holding a webinar on the act on Thursday February 27, 2025 at 12 Noon – 12:45pm.

Please see notice below with link to join on Thursday

Take care!

Clare

Clare D. Membiela, MLS, J.D.

Library Law Consultant

Library of Michigan

MembielaC@michigan.gov

517-335-8132

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From: Michigan Department of Labor and Economic Opportunity <LEO@govsubscriptions.michigan.gov>
Sent: Tuesday, February 25, 2025 11:17 AM
To: Membiela, Clare (MDE) <MembielaC@michigan.gov>
Subject: LEO to Host Webinar on Earned Sick Time, Minimum Wage Changes

Join Us Thursday

-- JOIN US THIS THURSDAY --

Join LEO for a Webinar on Minimum Wage and Earned Sick Time Changes

The Michigan Department of Labor and Economic Opportunity (LEO) is hosting a webinar to help you understand recent changes to Michigan’s wage and earned sick time laws. Learn what these updates mean for you and get your questions answered. 

LEO Deputy Director of Labor Sean Egan will host a live webinar to discuss how the new laws will affect workers and businesses. 

Join the Webinar

Thursday, Feb. 27 

Noon to 12:45 p.m.

Join the webinar virtually via Microsoft Teams 

Senate Bill 8, will incrementally increase the minimum wage to $15 per hour by 2027. House Bill 4002, amends the existing Earned Sick Time Act and will expand paid sick leave.

Key Points for Earned Sick Time

• Frontloading Paid Sick Time: As an alternative to the accrual method, employers can choose to frontload at least 72 hours of paid sick time for immediate use each year, or 40 for a small business, which eliminates the requirement for carryover or accrual tracking for full-time employees. 

• Frontloading Part-time Employees: As an alternative to the accrual method, employers may frontload paid sick time for part-time employees as well, with a prorated amount, subject to specific notice and true-up requirements. 

• Accrual Method: If choosing the accrual method, employees accrue 1 hour of paid sick time for every 30 hours worked, and unused paid sick time rolls over up to 72 hours.  Employers may limit the use of earned sick time to 72 hours, or 40 for a small business, in the 12-month period.

• New Hire Waiting Period: If using the accrual method, employers may have a policy for new employees hired on or after 2/21/25 requiring these employees to wait up to 120 days before using accrued sick time. Employees accrue earned sick time during this waiting period.  If frontloading, hours are available for immediate use. 

• Small Business Compliance: Small business is defined as an employer having 10 or fewer employees. Small businesses have until October 1, 2025, to comply with ESTA requirements. 

• PTO Policy: Employers can use a combined paid time off (PTO) policy to meet ESTA requirements, as long as the total paid leave meets or exceeds the necessary amounts and may be used for the same purposes. 

• Hourly Rate: For ESTA purposes, an employee's hourly rate is their normal hourly wage or base rate and excludes overtime, holiday pay, bonuses, commissions, tips, etc. 

• Enforcement: The Department of Labor and Economic Opportunity (LEO) is responsible for enforcing ESTA. 

• Sick Time Increments: Employers may choose to use either one-hour increments or the smallest increment for tracking sick time usage. 

Key Points for Minimum Wage

• Tipped minimum wage: Senate Bill 8 gradually increases the minimum cash wage for tipped employees from 38% of the full minimum wage to 50% of the regular minimum wage by 2031.
• Wage changes: Tipped minimum wage is $4.74 for the rest of 2025.
• Regular minimum wage: Senate Bill 8 keeps the minimum wage to $12.48 starting Feb. 21, reaching $15 by 2027, and adjusts for inflation after that.

Online Resources 

Earned Sick Time Act

Minimum Wage

MISSION Expand economic opportunity and prosperity for all

VISION Make Michigan a place where all PEOPLE, BUSINESSES, and COMMUNITIES have the educational and economical means to reach their full potential

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