Michigan Supreme Court reinstates original Earned Sick Leave law

August 14, 2024

In a 4-3 decision at the end of July, the Michigan Supreme Court ruled that the state legislature violated the Michigan Constitution when it adopted, then changed, the Earned Sick Time Act ballot initiative. For employers with employees in Michigan, this means the current Paid Medical Leave Act (PMLA), in effect since 2019, will be replaced by the original Earned Sick Time Act (ESTA), effective February 21, 2025.

Employers will need to switch from the PMLA to the ESTA, as they differ in the following ways:

	PMLA	ESTA (2/21/25)
Employers covered	Employers with 50 or more employees	One or more employees
Employee eligibility	Worked an average of 25 or more hours per week in the immediately preceding calendar year, and their primary work location is in Michigan (other exemptions)	Be engaged in service to an employer in the business of the employer
Accrual rate	One hour for every 35 hours worked	One hour for every 30 hours worked
Accrual cap	40 hours per year	No express cap
Leave usage cap	40 hours per year	72 hours per year*
Carryover cap	40 hours	No express frontload provision
Frontloading	Employers may frontload 40 hours	No express frontload provision
Reasons for leave	Employee or family member illness, injury, health condition, or preventative care; domestic violence or sexual assault; public health emergencies	Employee or family member illness, injury, health condition, or preventative care; domestic violence or sexual assault; public health emergencies; meetings at child's school/place of care related to child's health or disability; effects of domestic violence or sexual assault on the child
Family members	Child, parent, spouse, grandparent, grandchild, and sibling	Child, parent, spouse, grandparent, grandchild, sibling, domestic partner, and any other individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship
Increments	One-hour	Hourly increments or the smallest increment the payroll system uses to account other time off
Leave reinstated upon rehire	Not required	Within 6 months of separation
Documentation	Comply with usual and customary documentation requirements for requesting leave when using paid sick leave	Employee must be absent for more than three consecutive days before requiring documentation
Retaliation	No provision	Employers may not retaliate or interfere with rights
Existing policy for compliance	Yes, if the policy gives at least 40 hours of paid leave per year, which can include vacation, PTO, etc.	Only if the policy mirrors the amount, reasons, and accrual as ESTA

*Employers with fewer than 10 employees may still cap leave usage at 40 hours. But if employees accrue more than 40 hours of sick leave in a year, they are entitled to use an additional 32 hours of unpaid leave in the year.

Questions remain, including ones about frontloading and caps. The Michigan Department of Labor and Economic Opportunity said it is currently reviewing the court’s decision and will publish information “to ensure a thorough understanding and smooth implementation of the court’s ruling.”

Key to remember: Reverting to the original Michigan paid leave provisions will give employees more benefits.

Publish Date

August 14, 2024

Author

Darlene Clabault

Type

Industry News

Industries

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