I am working on information now. The bill is linked below so everyone can read it while I work on getting information out.
Section 2(l) (definition) and sections 3(1) and 3(2) of the bill address small employers. Small employers are NOT exempted, but have been given until October 1, 2025 to comply with the act.
https://www.legislature.mi.gov/documents/2025-2026/billenrolled/House/pdf/2025-HNB-4002.pdf
As always, please consult your library’s attorney with questions involving employee benefits and policies.
Thanks!
Clare
Clare D. Membiela, MLS, J.D.
Library Law Consultant
Library of Michigan
517-335-8132
The research and resources above are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue
or problem.
“the State may not, consistently with the spirit of the First Amendment, contract the spectrum of available knowledge.”
Griswold v. Connecticut, 381 U.S. 479, 482 (1965).
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From: Teresa Natzke <tnatzke@franklin.lib.mi.us>
Sent: Friday, February 21, 2025 12:01 PM
To: Membiela, Clare (MDE) <MembielaC@michigan.gov>
Cc: John Clexton <jclexton@gcdl.org>; Michlib-l <michlib-l@mcls.org>
Subject: Re: [Michlib-l] Does anybody know yet? 11th hour change to EST Act about nonprofits?
CAUTION: This is an External email. Please send suspicious emails to
abuse@michigan.gov
What about the number of employees? Are 10 or fewer exempt?
From:
"Michlib-l" <michlib-l@mcls.org>
To: "John Clexton" <jclexton@gcdl.org>, "Michlib-l" <michlib-l@mcls.org>
Sent: Friday, February 21, 2025 11:56:35 AM
Subject: Re: [Michlib-l] Does anybody know yet? 11th hour change to EST Act about nonprofits?
Hello John:
Here is a copy of the enrolled bill -
https://www.legislature.mi.gov/documents/2025-2026/billenrolled/House/pdf/2025-HNB-4002.pdf
Here is the legislation’s page (with analyses, etc.)
https://www.legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4002
It looks like the amendment process cleaned up the language regarding the definition of “Employer.” The term “nonprofit agency” was removed from the definition – but that doesn’t mean those entities
are exempted – the language of the final definition is pretty clear that ALL employers other than US Federal government employees are included:
Perhaps they were looking at a previous version?
Clare
Clare D. Membiela, MLS, J.D.
Library Law Consultant
Library of Michigan
517-335-8132
The research and resources above are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any
particular issue or problem.
“the State may not, consistently with the spirit of the First Amendment, contract the spectrum of available knowledge.”
Griswold v. Connecticut, 381 U.S. 479, 482 (1965).
Michigan’s
Top
10 Strategic Education Plan provides focused direction to drive educational achievement in support of all learners.
Get personalized voter information on early voting and other topics at
Michigan.gov/Vote.
From: Michlib-l <michlib-l-bounces@mcls.org>
On Behalf Of John Clexton via Michlib-l
Sent: Friday, February 21, 2025 11:00 AM
To: michlib-l@mcls.org
Subject: [Michlib-l] FW: Does anybody know yet? 11th hour change to EST Act about nonprofits?
CAUTION: This is an External email. Please send suspicious emails to
abuse@michigan.gov
From: John Clexton
Sent: Friday, February 21, 2025 10:47 AM
To: Michigan Library Association <mla@milibraries.org>
Cc: Membiela, Clare (MDE) <MembielaC@michigan.gov>
Subject: Does anybody know yet? 11th hour change to EST Act about nonprofits?
This morning, our finance team received a memo containing the following statement:
The definition of "employer" expressly exempts a "nonprofit agency" from its definition. Beyond this, the legislation does not provide exemptions
for any businesses or organizations (though see “accrual” for new rules regarding small businesses).
Does this exemption refer to certified nonprofits or nonprofits categorized by tax code?
Does our financial people have it wrong?
I would appreciate any clarification on this matter.
Thank you,
John
John Clexton
2025 ARSL President
Library Director
Gladwin County District Library
989-347-1007
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