Michigan's Earned Sick Time Act

All private sector Michigan employers with one or more employees must comply with the Earned Sick Time Act under MCL §§ 408.961–408.975 (ESTA), unless an exemption applies. This law covers leave for various medical purposes, including recovery from a medical condition, preventative care, caring for a family member, and to address domestic violence matters. If you’re an employer in Michigan, it’s important to understand your obligations under this law.

What Employers Are Exempt?

The Earned Sick Time Act generally applies to all employers operating in the private sector in Michigan. However, it’s vital to note that there are exceptions for certain groups of workers. Specifically, exempted groups include government workers, unpaid interns or trainees, minors under Youth Employment Standards, and on-call or flexible-schedule workers who set their own hours. While the act is broad, employers should be aware of which groups are covered and what employees are exempt to ensure compliance.

How Much Sick Time Can Be Accrued?

The amount of sick time that can be accrued by employees depends upon the size of the employer. Notably, the number of employees is not based solely on those in a company’s Michigan workforce. An employer’s size is determined by the nationwide headcount, including full-time, part-time, and temporary employees. The amount of sick time employees can accrue under the Earned Sick Time Act is as follows:

• Employees of small employers with 10 or fewer employees: Employees can accrue up to 40 hours of paid sick time per year.
• Larger employers with 11 or more employees: Employees can accrue up to 72 hours of paid sick time per year.

Each eligible employee accrues one hour of paid sick time for every 30 hours worked. Alternatively, employers may “frontload” the full year’s allotment of sick time, rather than track accrual. Employers may offer a combined paid time off benefit that covers vacation, personal, and sick leave so long as this benefit meets or exceeds the accrual and usage standards of the ESTA.

Contact an Experienced Michigan Business Law Attorney

If you have questions about compliance with Michigan’s Earned Sick Time Act, it’s essential to consult with a knowledgeable attorney. With offices in East Lansing, Mt. Pleasant, Grand Rapids, and Detroit, The Gallagher Law Firm offers professional services to business owners for a broad scope of legal and compliance matters. To learn more about how we can assist you, contact us online, call (517) 853-1515 or email bpg@thegallagherlawfirm.com.

ESTA compliance is complicated and cannot be accurately summarized in a blog. For more information see Update on Michigan’s Earned Sick Time Act & the Minimum Wage Law.