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What’s New

Just before the Feb. 21 deadline, the Michigan Legislature passed changes to the Earned Sick Time Act (ESTA) (HB 4002) and minimum wage law (SB 8) late Thursday evening. Gov. Whitmer signed the bills into law on Friday as Public Acts 1 and 2 of 2025, with an effective date of Feb. 21 at 12:02 a.m.

Why It Matters

Without legislative action and the Governor’s signature, the original, sweeping laws would have gone into effect as written on Friday, Feb. 21. Fortunately, the House and Senate worked together on a bipartisan compromise to provide necessary revisions that benefit both employers and employees.

  • The Lansing Regional Chamber of Commerce (LRCC) has been actively engaged in advocating for these changes, ensuring that employer voices were heard throughout the process.
  • We have been working closely with the Michigan Chamber of Commerce, which is leading efforts to update compliance toolkits to help businesses navigate these changes.

The Details

While the new laws represent significant improvements to the Earned Sick Time Act (ESTA) and preserve the tipped wage system, not all proposed changes made it into the final version. The updates take effect Feb. 21, 2025.

  • Read the Michigan Chamber’s preliminary recap and summary of key highlights, including:
    • Accrual and carryover allowances
    • New provisions for small businesses and part-time employees
    • Compliance timelines and requirements for written notices

What’s Next

The Department of Labor and Economic Opportunity (LEO) has indicated they will need time to update required workplace posters and compliance materials. While active enforcement is not expected immediately, businesses should start preparing for these changes now.

  • Employees can begin using sick time as soon as it is accrued.
  • Employers have 30 days to comply with the requirement to provide written notices to employees about their earned sick time and related policies.