Starting February 21, 2025, the Michigan Earned Sick Time Act (ESTA) will replace the current Paid Medical Leave Act (PMLA), expanding sick time benefits for employees and imposing new compliance requirements for employers across the state.

Key Changes Under ESTA

Universal Application. ESTA applies to all Michigan employers that have one or more employee(s), excluding the U.S. government and railway workers and employers covered by the Railroad Unemployment Insurance Act. All employees—including full-time, part-time, seasonal, and temporary workers—are eligible for earned sick time if they pay federal income tax.

Sick Time Accrual and Use. Employees earn 1 hour of sick time for every 30 hours worked. Accrued sick time depends on the employer’s size: Employers with fewer than 10 employees must provide 40 hours of paid sick time annually, plus 32 hours of unpaid sick time if accrued. Employers with 10 or more employees must provide at least 72 hours of paid sick time annually. Employers may restrict use of ESTA until the 90th calendar day after hire. In addition, unused sick time carries over to the next year but is not subject to payout upon termination or resignation, unless the employer’s written policy or contract states otherwise.

Compliance Threshold for Employers. Employers meet the 10-employee threshold if they have 10 or more employees for 20 or more weeks in the current or previous calendar year, even if the weeks are non-consecutive. Once an employer crosses this threshold, they remain in the higher category for the rest of the current and following calendar year.

Leave Request Rules. For foreseeable leave, employers can require up to 7 days’ notice. If the leave is unforeseeable, notice must be provided as soon as practicable. Employers may request reasonable documentation for absences lasting 3 or more consecutive days.

Impact on Collective Bargaining Agreements (CBAs)

If a CBA includes terms on sick leave or similar benefits, those terms prevail over ESTA until the agreement expires, is renegotiated, or renewed—even if the terms are less generous. Employees covered by CBAs silent on sick leave will begin accruing benefits under ESTA starting February 21, 2025.

Employer Obligations

To comply with ESTA, employers must:

Post Required Notices. Display the mandatory ESTA poster in the workplace to inform employees of their rights.

Track Sick Time Accrual. Maintain accurate records of employee sick time accrual and usage.

Review Policies. Update internal policies to align with ESTA’s requirements.

Additional Resources

For assistance with ESTA implementation or to address specific concerns, please contact one of the lawyers at MHS.