Effective February 21, 2025, Michigan’s Earned Sick Time Act (ESTA) replaces its current paid sick leave law, the Paid Medical Leave Act (PMLA). The ESTA was originally enacted by voter initiative in 2018 and was subsequently subject to state court litigation. On July 31, 2024, the Michigan Supreme Court struck down the PMLA and reinstated the ESTA.
The ESTA requires all employers to provide paid sick leave whereas PMLA currently applies to employers with 50 or more employees.
In addition, the following key provisions under ESTA will differ from the PMLA:
- Accrual. Currently, under PMLA covered employees may accrue up to 40 hours of paid sick time. ESTA will revert to the required accrual of up to 72 hours of paid sick time for large employers (those with 10 or more employees) and a combination of 40 hours of paid and 32 hours of unpaid leave for small employers (those with less than 10 employees).
- Carryover. Currently, under PMLA employers who frontload 40 hours of paid sick time do not have to allow carryover of earned but unused time each 12-month period. ESTA contains no such provision making it unclear whether employers who frontload time will be subject to carryover requirements.
- Documentation. Currently, PMLA permits an employer to request documentation consistent with its normal notice, procedural, and documentation requirements for leave, provided the employee is granted three days to provide the documentation. Under ESTA, employers may not require documentation unless the employee is absent for more than three consecutive days. In addition, ESTA requires employers to pay for any out-of-pocket cost associated with providing documentation, such as co-pays.
- Other Notable Differences. The PMLA not only limits employer and employee coverage but also imposes restrictions on usage, sets accrual caps, and specifies methods for calculating leave payments. However, these detailed provisions are absent in the ESTA, leaving employers with unresolved questions about ensuring legal compliance.
- Rights and Remedies. The remedies under ESTA are restored, allowing any employee to bring a private right of action for violations of the act. This includes seeking reinstatement, attorneys’ fees, and double back pay as liquidated damages.
Next Steps
The extent to which employees will retain their rights and accrued sick leave under the PMLA remains uncertain, and several questions about ESTA are still unresolved. Further guidance is anticipated. In the meantime, employers should familiarize themselves with the upcoming changes and begin planning for compliance. This includes updating existing leave policies and procedures and ensuring supervisors and managers are trained in the new regulations.
HR Works will continue to monitor this topic and provide updates as more information is available.
