New Michigan Law Gives Sick To All Michigan Workers

Have you heard the news?

If you get the sickies in the new year, you may be excited about this new policy.

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New Sick Leave Policy

On July 31, 2024, the Michigan Supreme Court officially reinstated the original Earned Sick Time Act, better known as ESTA.

When it was initiated in 2018, according to Faegre Drinker, a saga began.

"Rather than allow voters to decide the fate of those initiatives, the Michigan legislature “adopted” them, and during that same legislative session, amended them. In doing so, the legislature delayed the minimum wage increase until 2030 and narrowed sick leave requirements, as enacted through the PMLA."

So, what does this mean for Michigan workers in 2025?

On February 21, 2025, almost all Michigan employers will have to comply with the ESTA.

This compliance means that employers will have to offer 72 hours of sick leave annually, with varying paid leave requirements based on employer size.

If an employer is found violating ESTA, employees could bring a civil action for appropriate relief, including:

• payment for used earned sick time
• rehiring or reinstatement to an employee's previous job
• back wages payments
• equal additional amount as liquated damages and more

Effective February 21st, 2025, the state's minimum wage rate will also increase from $10.33 per hour to a rate likely exceeding $12.00 per hour.

As for tipped employees, the rate will also increase from a $3.93 per hour tip credit rate to 48 percent of the new minimum wage.

So, if the minimum wage rises to $12.00, the new tip credit rate would be $5.75 per hour.

For more details, you can visit the Jackson Lewis website.