Earned Sick Time Act (ESTA)

Beginning February 21, 2025, ALL small businesses operating in the State of Michigan will be subject to paid sick leave requirements.

What you need to know now:

• ESTA will apply to virtually all employers ---not just those with 50+ employees

• All employers will need a Sick Leave Policy or update their current Sick Leave Policy in accordance with the ESTA

• ESTA includes temporary and Part-time employees, but not 1099 contract workers

• ESTA does not prevent employers from front loading sick time at the beginning of the year, but it does state that employers will still have to track employees sick time accrual and that said sick time will may be carried over year to year

• ESTA says that employees may take sick leave in the smallest amount of time that their work time is tracked. So, if it is in 5-minute increments then 5-minute increments of sick time. If it is in 15-minute increments, then it is 15-minute increments of sick time.


If you would like more information---please see the links below.

Earned Sick Time Act Frequently Asked Questions (FAQ)


Small Business Owner Guide to New Minimum Wage and Paid Sick Leave Requirements - SBAM | Small Business Association of Michigan


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