Michigan’s small businesses are facing tremendous uncertainty due to expansive paid sick leave requirements that will go into effect February 21, 2025. The Earned Sick Time Act, or ESTA, not only mandates that employers provide up to 72 hours per year of paid sick time, but also strips many core HR decisions from employers’ hands and requires complex and burdensome accrual and tracking conditions.
Bills were introduced last legislative session to address small business owners’ concerns, but these bills were not taken up for a vote, despite considerable bipartisan support.
As the 2025 legislative year begins, both the House and the Senate have acknowledged the need for urgent changes to the Earned Sick Time Act and have introduced different bills to address glaring shortcomings before they go into effect in February.
While Senate Bill 15 is a welcomed starting point for the conversation in the Senate, the bill does not adequately address small business owners’ substantial concerns with ESTA, as many pivotal questions are left unanswered.
On the other hand, House Bill 4002 seeks to make substantial and meaningful changes to ESTA that would maintain the new benefits for employees that are mandated by the act while providing employers with the flexibility required to adequately implement these new benefits. The changes proposed in Senate Bill 15 begins the conversation, but only House Bill 4002 rectifies the core problems with the Earned Sick Time Act.
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