Michigan’s Earned Sick Time Act: What Employers Need to Know
Michigan’s Earned Sick Time Act: What Employers Need to Know For 2025
Big changes are ahead for Michigan workplaces. On February 21, 2025, Michigan’s Earned Sick Time Act (ESTA) is set to take effect—bringing stronger sick leave protections for employees across the state.
Originally passed by citizen initiative in 2018, the law was significantly weakened by legislative amendments. However, in a landmark decision, the Michigan Supreme Court ruled that the Legislature’s “adopt and amend” approach was unconstitutional, reviving the original, more expansive version of ESTA.
If you’re an employer in Detroit, Dearborn, Royal Oak, or anywhere in Michigan, now is the time to prepare. Here's what you need to know.
Who Is Covered?
The Earned Sick Time Act applies broadly to nearly all Michigan employers with at least one employee, regardless of size. Key points:
Applies to full-time, part-time, and temporary workers
Excludes independent contractors, federal employees, and certain seasonal workers
Employees begin accruing sick time on February 21, 2025, or their first day of employment, whichever is later
How Sick Time Accrues
Under ESTA, eligible employees earn 1 hour of sick time for every 30 hours worked.
Accrual begins immediately upon hire
Employers may impose a 120-day waiting period before new employees can use earned sick time
Employers can choose to front-load sick time instead of tracking accruals throughout the year
Sick Time Entitlements: What’s Required?
Under the original Earned Sick Time Act:
All employees can accrue up to 72 hours of earned sick time per year
For employers with fewer than 10 employees, at least 40 hours must be paid, and the remaining 32 hours may be unpaid
Employers with 10 or more employees must provide the full 72 hours as paid sick leave
Rollover Rules
Unused sick time can roll over into the next year
Employers may cap annual usage at the 72-hour limit
Valid Uses for Sick Time
Employees may use earned sick time for a variety of health and safety-related reasons, including:
Personal illness, injury, or medical appointments
Caring for a sick or injured family member
Mental health conditions or counseling
Issues related to domestic violence or sexual assault, including:
Seeking medical care
Relocating
Legal proceedings
School-related meetings regarding a child’s health or special needs
Public health emergencies, including quarantines, business closures, or caring for someone affected
Employer Responsibilities and Rights
Employers must comply with several key provisions:
May require up to 7 days’ advance notice for foreseeable absences
May request reasonable documentation for absences longer than 3 consecutive days
Cannot require employees to find a replacement or cover their shift before taking leave
Cannot retaliate against employees for using earned sick time
✅ If an employer already offers a PTO policy that meets or exceeds ESTA's requirements, they may already be in compliance—but documentation and proper communication are still essential.
What Employers Should Do Now
To prepare for the February 21, 2025 rollout:
✅ Review and update your current sick leave and PTO policies
✅ Educate employees about their rights under the new law
✅Post required notices in the workplace (available at michigan.gov/wagehour)
✅ Track accruals and usage and retain records for at least 3 years
✅ Work with legal counsel to ensure full compliance with ESTA and other wage and hour laws
Serving Southeast Michigan Businesses
Whether you're a small business owner in Royal Oak, managing a healthcare facility in Dearborn, or overseeing a corporate team in Detroit, these changes will impact how you manage employee leave. Our firm proudly supports employers across Southeast Michigan in navigating evolving employment laws with confidence and clarity.
Need help updating your employee handbook or PTO policy? Let our team guide you through the changes.