As of today, Michigan’s Earned Sick Time Act (ESTA) is slated to take effect this Friday, February 21, 2025. Guidance on the Act as written is available on the Michigan Department of Labor and Economic Opportunity Wage and Hour Division’s website or in Varnum’s recent advisory on Common Questions from Employers regarding ESTA.
However, both the Michigan House of Representatives and the Michigan Senate have proposed amendments to ESTA that, if enacted, would significantly revise the Act. Both sets of proposed amendments differ substantially from each other. The provisions of these competing sets of legislative amendments have been summarized in a recent advisory. So far, the Michigan House has passed its proposed amendments and sent them to the Michigan Senate for consideration. The Michigan Senate has held hearings on its own set of proposed amendments but has not passed its amendments – or the House’s proposed amendments – as of yet.
Governor Gretchen Whitmer has urged both House and Senate leaders to reach a compromise on the proposed changes prior to ESTA’s effective date of February 21. She has also called for a delay in the Act’s implementation date until July 1, 2025, to give the legislature time to work out a compromise and Michigan businesses time to comply. Both House Speaker Matt Hall and Senate Majority Leader Winnie Brinks have expressed a commitment to reaching a compromise by the February 21 deadline, but a compromise on the ESTA amendments may not be possible by the end of this week due to the significant differences between the competing legislative proposals.
Given this present uncertainty, employers should be prepared to comply with the current form of ESTA on Friday, February 21, 2025, but should refrain from formally rolling out any changes to the policy prior to Friday in the event the Michigan legislature does act before that date.
Varnum’s Labor and Employment Team will continue to monitor ESTA as lawmakers attempt to reach a compromise agreement.