Michigan Paid Sick Leave & Minimum Wage Changes
Get ready for significant updates to Michigan's paid sick leave and minimum wage laws, taking effect February 21, 2025! Here's what employers need to know:
Paid Sick Leave
Michigan's Earned Sick Time Act requires employers of all sizes to provide paid earned sick time (EST) to all employees in Michigan. Employees will accrue EST at a rate of one hour for every 30 hours worked, beginning February 21, 2025, or on their hire date (whichever is later). Exempt employees' accrual can be calculated based on a 40-hour workweek. Employers have the option to frontload all 72 hours (or more) at the start of the benefit year, but unused, accrued EST must be allowed to carry over from year to year, even if frontloaded.
Employees can begin using EST as it is accrued, but employers can require new hires to wait until their 90th calendar day. EST can be used for various reasons, including:
The employee's or a family member's mental or physical health
Certain situations involving domestic violence or sexual assault
Meetings at a child's school or care place related to the child's health, disability, or the effects of domestic violence or sexual assault on the child
The closure of their workplace or their child's school or place of care by a public health official due to a public health emergency
Certain reasons related to limiting the spread of a communicable disease.
Employers can cap annual use of EST at 72 hours and can request reasonable documentation when employees use EST for more than three consecutive days. The employer will be responsible for the employee's out-of-pocket costs associated with obtaining the required documentation.
By February 21, 2025, or upon hire (whichever is later), employers must give written notice to employees about their EST rights and display a poster with the same information in a conspicuous and accessible location in the workplace. This notice and posting must be provided in English, Spanish, and any primary language spoken by at least 10% of employees, if the state provides a translation in that language. The state has created a model notice for employers to use.
Minimum Wage
Michigan's minimum wage is also changing:
February 21, 2025: $12.48/hour
February 21, 2026: $13.29/hour
February 21, 2027: $14.16/hour
February 21, 2028: $14.97/hour
After 2028, the minimum wage will be adjusted annually each February 21, based on inflation.
Action Items:
Update sick leave policies to reflect the new requirements
Add the EST notice to new hire packets
Post the EST notice in a conspicuous and accessible location in the workplace
Prepare to pay employees at least the new minimum wage