The landscape of employee benefits in Michigan is evolving with the introduction of the new earned sick time act in Michigan. Healthcare employers must stay informed about these developments to ensure compliance and maintain positive workplace relations. At HR for Health, we’re closely monitoring these legislative changes to help healthcare practices navigate the complexities of employee leave management effectively.
What We Know About the new Michigan Sick Leave Law
The new Michigan sick leave law has undergone significant changes recently, creating new obligations for employers throughout the state. While many details are still being finalized through the regulatory process, several key requirements have been established.
The Earned Sick Time Act legislation ensures workers have access to paid time off for health-related needs, addressing a critical gap in employee protections. As with most payroll regulations, proper documentation systems will be essential for tracking the accrual and usage of sick leave.
Key Provisions of the Michigan Paid Sick Leave Law Text
The Earned Sick Time Act in Michigan requires employees to accrue 1 hour of paid sick leave for every 30 hours worked. Employers may cap the use of sick time at 72 hours annually (or 40 hours for businesses with 10 or fewer employees), and unused time must roll over up to that cap. Employers may also choose to front load the full 72 or 40 hours each year instead of tracking accrual.
Employers should ensure their time-tracking and accrual tools can automatically enforce these limits and carryovers. HR for Health’s platform helps automate these calculations and ensures compliance with ease.
Preventive care and both physical and mental health conditions are included in the permitted uses of paid sick time. Employees may also use their sick leave to care for a family member’s health condition.
Employers may impose a waiting period of up to 120 days before new hires can use accrued time (only when using the accrual method). HR for Health helps employers apply these new hire rules consistently across teams while tracking sick leave accrual from day one.
Small Business Compliance Timeline
Small businesses with 10 or fewer employees must begin complying with the new Michigan sick leave law by October 1, 2025. Businesses that did not employ anyone before February 21, 2022, have a longer window of three years from their first hire. Not sure if you qualify for delayed compliance? HR for Health can help you assess your eligibility and meet deadlines with confidence.
Using PTO Policies Instead of Sick Leave
Employers can use a general PTO policy to satisfy the requirements of the new law, provided it offers equal or greater benefits and meets all usage and documentation requirements. HR for Health ensures your PTO policies meet the new legal standards while maintaining consistency in administration and tracking.
Michigan Sick Leave Notice and Documentation Requirements
Employers must notify employees of their rights under the new law within 30 days of its effective date (or at hiring for new employees). Notices must be available in English, Spanish, and any language spoken by at least 10% of the workforce.
Tracking Sick Time Usage
Employers may track earned sick time usage in one-hour increments or in the smallest increment they use for other absences. HR for Health’s system supports customizable time-off increments to match your workflow and operational needs.
Historical Context of Sick Leave in Michigan
Understanding the new Michigan sick leave law requires some historical context. Michigan has had a complex legislative history regarding paid sick leave. In 2018, a ballot initiative led to the adoption of the Earned Sick Time Act, which was subsequently modified by the legislature through an “adopt and amend” strategy.
How Michigan’s Law Compares to Other States
The new sick leave law in Michigan follows a trend seen across numerous states that have implemented similar legislation. Currently, about 16 states plus Washington D.C. have enacted paid sick leave laws, creating a patchwork of requirements across the country.
States like California, New York, and Washington have well-established sick leave programs that may provide insight into how Michigan’s program will ultimately function. These states typically require accrual of sick time based on hours worked, with provisions for carryover of unused time between years.
Most state laws include anti-retaliation provisions protecting employees who use their legally entitled sick leave from negative employment consequences. Healthcare practices should ensure their attendance tracking systems properly distinguish between protected sick leave and other types of absences to avoid potential compliance issues.
Common Elements of State Sick Leave Laws
While the final details of the new Michigan paid sick leave law are still emerging, other state laws suggest several common elements that employers should anticipate:
- Documentation requirements typically allow employers to request verification for longer absences
- Notice provisions often require advance notification when sick leave is foreseeable
- Carryover provisions generally permit some unused sick time to transfer to the following year
- Record-keeping obligations typically mandate retention of sick leave records for 2-3 years
These common elements provide a framework for what healthcare practices might expect as Michigan finalizes its regulations. Reviewing your time tracking capabilities now can help ensure you’re prepared to capture the necessary information when the law takes effect. HR for Health supports all of these functions by offering automated accrual tracking, documentation templates, and record retention tools to keep your practice compliant.
Preparing Your Practice for Compliance
While awaiting final details of the state of Michigan’s new sick leave law, healthcare practices can take proactive steps to prepare for compliance, including:
- Review your current paid time off and sick leave policies to identify potential gaps compared to the expected requirements. Your employee handbook should clearly communicate all leave policies, including how time is accrued and procedures for requesting leave.
- Ensure your timekeeping system can accurately track hours worked for sick leave accrual purposes. Automated time tracking solutions eliminate manual calculation errors and provide detailed records for compliance purposes.
- Train your management team on the new requirements once finalized. Supervisors should understand when employees are entitled to use sick leave and avoid actions that could be perceived as interference or retaliation.
- Develop a communication plan to inform employees about their rights under the new law. Clear communication helps prevent misunderstandings and demonstrates your commitment to employee well-being.
FAQ About the Michigan Sick Leave Law
Q: When will the new Michigan sick leave law take effect?
A: The Earned Sick Time Act (ESTA) will require employers with 11 or more employees to offer paid sick leave starting February 21, 2025. Small businesses with 10 or fewer employees will need to provide sick leave starting October 1, 2025. However, businesses that didn’t employ anyone before February 21, 2022, will have more time to comply, with the requirement kicking in three years after they hire their first employee
Q: Will the Michigan law on sick leave apply to part-time employees?
A: Yes. Part-time employees are covered and will accrue sick time proportionally based on hours worked.
Q: Can we require documentation for sick leave use?
A: Yes. Most state laws, including Michigan’s, permit employers to request documentation for absences exceeding 3 consecutive days.
Q: How does the law affect our existing PTO policy?
A: You may continue to use your PTO policy if it provides equal or better benefits and meets the usage and notification standards outlined in the new law.
Q: Will Michigan’s new sick leave law include seasonal employees? A: Yes, but they may be subject to waiting periods or other minimum service requirements before using sick time.
Stay Updated on Michigan Sick Leave Requirements
HR for Health offers a fully integrated HR and payroll platform designed specifically for healthcare practices navigating evolving leave laws. Our system simplifies accrual tracking, automates handbook updates, and ensures employee notices are delivered on time.
Whether you’re updating your sick leave policies or rolling out PTO changes, HR for Health ensures you’re audit-ready and fully compliant. Let us help you take the guesswork out of Michigan’s new sick leave requirements. Book a consultation today to get started.
