Urgent action needed to improve upcoming Earned Sick Time and minimum wage changes
Lansing, MI – January 9, 2025. SBAM, alongside the Michigan Manufacturers Association, Detroit Regional Chamber of Commerce, Business Leaders for Michigan, Grand Rapids Chamber, and the Michigan Chamber of Commerce, are voicing gratitude that members of the House and Senate are signaling a desire to find a commonsense fix to the Earned Sick Time Act (ESTA) and minimum wage law slated to go into effect on February 21, 2025.
“Employers appreciate Speaker Hall prioritizing legislation to provide commonsense amendments to ESTA and the tipped minimum wage law that tracks the needs and concerns of the business community. Further, we believe the proposals introduced by Sen. Hertel and Sen. Singh represent progress towards a prompt and productive solution.
“The legislation was discussed in the prior legislative session but failed to see action despite having broad bipartisan support to make the laws workable for businesses and workers alike.
“With the effective date just 43 days away, it is urgent that the Michigan Legislature and Governor work on consensus changes now.”
The business coalition’s focus is not on reducing benefits but avoiding burdensome micromanagement of businesses. Implementation changes include:
- Allowing businesses to keep their generous paid leave policies intact, “frontload” or provide benefits at the beginning of the benefit year and payout unused time to avoid carryover requirements.
- Exempting small businesses from the requirements of the Act.
- Clarifying which employees are eligible for this benefit.
- Allowing for time to be used in 1-hour increments unless the employer has a different policy.
- Allowing employers to appropriately manage their absence control policies and deal with abuses.
- Supporting tipped wage employees by preserving the tipped wage credit.
