What Michigan Manufacturers Need to Know
After nearly five years, Michigan's Paid Medical Leave Act (PMLA) will be replaced by its ballot proposal version, known as Michigan's Earned Sick Time Act (ESTA). How should manufacturers ensure compliance with the new laws? Our strategic partner, Varnum LLP, is happy to share what Michigan manufacturers need to know.
WHAT HAPPENED?
On July 31, 2024, in a case filed against Michigan's Attorney General back in 2021, the Michigan Supreme Court ruled that the Michigan Legislature’s adoption, and subsequent amendment of two voter-initiated 2018 ballot proposals within the same legislative term, violated Michigan’s Constitution and ordered reinstatement of the laws in their original ballot-proposal wording and updated timelines. One of those ballot-proposals was Michigan's PMLA.
OUT WITH THE OLD, IN WITH THE NEW
On February 21, 2025, Michigan's PMLA will be replaced with the ballot proposal version, ESTA. ESTA requires employers to provide an accrual of one hour of paid leave for every 30 hours worked: accrual is uncapped, and carryover of all hours is required (though use may be limited to 72 hours per year).
WHO IS AFFECTED?
The PMLA currently only covers Michigan employers with 50 or more employees. Beginning February 21, 2025, all Michigan employers (except the federal government) will need to comply with ESTA. Where the PMLA only covered nonexempt employees working more than 25 hours per week, ESTA covers all employees without regard to classification, type, or hours.
EXCEPTION FOR SMALL BUSINESSES?
"Small" businesses with fewer than 10 employees are permitted to provide only 40 paid hours of sick time, but must allow 32 additional hours unpaid, for a total of 72 hours of overall sick time.
--- Ashleigh Draft and Francesca Parnham, Varnum LLP
*ESTA is subject to modification if legislative action is taken prior to the February implementation date, so Michigan manufacturers should remain alert for changes.