The legislature passed updated versions of the Michigan Earned Sick Time Act and the Minimum Wage Law. These updates continue to have an effective date of February 21, 2025. 2025-HNB-4002.pdf (SECURED); 2025-SNB-0008.pdf (SECURED). A highlight of some of the changes are as follows.

Minimum Wage:

• $12.48, beginning February 21, 2025
• $13.74, beginning January 1, 2026
• $15.00, beginning January 1, 2027
• The tipped minimum wage cap will raise from 38%, effective on February 21, 2025, and increase gradually to 50% by 2031

Earned Sick Time Act:

• Continues to be in place for all employers except the United States Government, and most Michigan employees with a few exceptions (for example: gig workers, unpaid trainees or interns, employees subject to the youth employment standards)
• Small employers, those with 10 or fewer employees will have until October 1, 2025, to be in compliance with the Act; in addition, small employers will need to provide up to 40 hours (no longer required to give the 32 hours unpaid as previously written)
• Frontloading:
  • Employers are permitted to frontload time and not track accruals
  • No carry forward is required if the time is frontloaded
  • Employers can calculate the front-loaded time differently for part-time employees, as long as certain requirements are met
  • Small employers are not required to carry forward more than 40 hours
• If an employer provides paid time off that follows the ESTA requirements, no additional time is required for ESTA purposes (a separate ESTA bank is not required in addition to PTO, for example)
• Employers must provide notices to employees by March 23, 2025
  • The State of Michigan will need to provide updated posters
• Employers can require new hires to wait 120 days before using their paid sick leave and paid sick leave must be reinstated only if employees are rehired within two months (this may help with seasonal employees)
• The rebuttal presumption that employers have violated the ESTA if they take adverse action within 90 days of the employee exercising their rights under the ESTA is removed
• Employers can hold employees accountable to written absence notice requirements

This is a broad overview of the changes made; we are working on updated policy sample language and will send that out soon. In addition, we will watch for updated resources from the State of Michigan and provide that as well.

As always, we are here to help if you have questions.

Denise Neuhaus, SPHR, SHRM-SCP
Director of Human Resources & Compliance
dneuhaus@bhsins.com