Michigan’s New Paid Sick Leave Law: Key Changes Explained

News Summary

Governor Gretchen Whitmer has signed House Bill 4002, making vital updates to Michigan’s paid sick leave law. The modifications extend requirements to smaller businesses, mandating a minimum of 40 hours of paid sick leave annually, and implement other significant changes. With the waiting period for new employees extended and new compliance regulations for employers, Michigan’s workforce landscape is set for a major shift. This new law aims to enhance workers’ rights, but concerns linger about the potential impact on sick leave accessibility.

Michigan’s New Paid Sick Leave Law: What You Need to Know

In an exciting development for workers across Michigan, Governor Gretchen Whitmer recently signed House Bill 4002 into law, making significant changes to the state’s paid sick leave requirements. This move comes just weeks before a crucial ruling from the Michigan Supreme Court was set to enforce the original sick leave law. With these updates now in play, the landscape of employee benefits is about to shift, and it’s important to stay informed.

A Brief History Lesson

The journey to these changes has been quite tumultuous. Back in 2018, Michigan lawmakers adopted a voter-initiated sick leave legislation. However, the excitement was short-lived as legislators sought to weaken those laws shortly after their adoption. This led to a legal showdown, culminating in a July 2024 Supreme Court ruling, which declared the legislature’s method of altering the sick leave law unconstitutional. Now, with the latest modifications, both large and small businesses will be impacted under the new law.

What Will the New Law Require?

The law is set to expand sick leave coverage beyond just large employers, which previously had to comply if they employed 50 or more workers. Now, even small businesses with 10 or fewer employees are required to provide a minimum of 40 hours of paid sick leave per year. For larger organizations, the threshold is raised to 72 hours of paid sick leave annually.

Under the new guidelines, employees will earn sick leave at a rate of one hour for every 30 hours worked. Alternatively, employers have the option to provide their workers with a lump sum of sick leave hours at the beginning of the year. Moreover, any unused sick time can carry over from year to year, although this isn’t required for those who receive hours upfront.

How is Sick Leave Calculated?

Determining sick leave pay will be based on the employee’s usual hourly wage or the standard minimum wage for tipped workers, excluding any additional overtime or extra pay types. Employees can utilize their accrued sick leave for a variety of reasons, from personal or family health issues to preventive care, and even for legal actions concerning domestic violence or sexual assault.

Important Timelines and Regulations

There are also some changes concerning when employees can use their sick leave. The waiting period has been extended from 90 days to 120 days, meaning new hires will need to wait a little longer to take advantage of their leave. However, if a worker is rehired within two months, they will keep their previously accrued sick time.

Another significant modification is that employees can no longer sue their employers directly for unpaid sick leave violations. Instead, they are encouraged to lodge complaints with the Department of Labor and Economic Opportunity, potentially leading to sick pay or even reinstatement.

What Happens if Employers Don’t Comply?

For those employers who don’t play by the rules, there are severe penalties. Employers could face fines of up to $1,000 for retaliating against workers based on their use of sick leave and might incur additional civil fines that could amount to eight times the worker’s hourly wage for sick leave violations.

What About Small Businesses?

Small businesses have until October 1, 2025, to get their policies in line with the new regulations. New small businesses that have not hired anyone prior to February 21, 2022, are granted a grace period of three years to comply after bringing on their first employee. Notably, independent contractors, unpaid interns, federal workers, and employees under 18 are not covered by this law.

Looking Ahead

While the changes in paid sick leave laws may bring about some improvements for Michigan workers, advocates have expressed concerns. Groups like Mothering Justice have pointed out that the revisions could lead to downsizing sick leave rights and a lack of accountability for employers. As these new rules come into effect, it will be interesting to see how they impact the companies and employees across the state.

In the months to come, employers and workers alike will need to familiarize themselves with the details of this legislation, ensuring that the rights of workers are protected while also navigating the requirements for compliance. It’s a significant shift in Michigan’s workforce landscape, and now’s the time to stay informed!

Deeper Dive: News & Info About This Topic

• Littler: Michigan’s 11th Hour Changes to Minimum Wage, Tip, and Paid Sick Leave
• Jackson Lewis: Last Minute Changes to Michigan’s Earned Sick Time Law
• Foley: Michigan’s Significant Revisions to Earned Sick Time Act
• Detroit Free Press: Michigan’s New Sick Leave Law
• National Law Review: Last Minute Changes to Michigan’s Earned Sick Time Act
• Wikipedia: Michigan
• Google Search: Michigan Sick Leave Law
• Google Scholar: Michigan Sick Leave Law
• Encyclopedia Britannica: Michigan
• Google News: Michigan Minimum Wage