On July 31, 2024, the Michigan Supreme Court reinstated the Earned Sick Time Act (ESTA) and Improved Workforce Opportunity Wage Act as originally adopted in 2018. This voids the amendments made to those acts, which created Michigan’s Paid Medical Leave Act (PMLA). The Court ruled that ESTA will become effective on February 21, 2025, impacting Michigan employers of all sizes.
Unlike the PMLA, the ESTA will apply to virtually all employers – not just those with 50+ employees. Employers with less than 50 employees who were not covered by the PMLA will need to ensure they have an earned sick time policy in place to meet the ESTA’s requirements. Employers who have a policy covering earned sick time or other forms of paid leave will need to review and likely revise their policy to ensure compliance with the ESTA, which has broader requirements than the PMLA. For example, unlike the PMLA, the ESTA does not exclude temporary employees, exempt employees or any part-time employees. The ESTA also changes accrual rates, overall leave entitlements, covered family members, qualifying reasons for leave use and more.
Due to the complexity of the changes, many employers will need assistance in making updates to their policies or will need to create new policies that adhere to the ESTA’s requirements. This is where Warner can help!
Warner’s Labor and Employment Practice Group has developed an ESTA policy template for a purchase price of $400.00. We are also available to help employers revise existing policies to ensure compliance.
If you are interested in purchasing the template for a fixed price of $400.00, or need assistance in revising your current policy, please contact your Warner attorney or Liz Burnson at eburnson@wnj.com or 616.752.2450.