Michigan's Earned Sick Time Act (ESTA) is scheduled to go into effect on Friday, February 21, 2025.

Who is affected by this?	ALL employers doing business in the state of Michigan or those that have employees working in the state of Michigan.
Which employees are eligible to accrue sick time?	ALL employees regardless of status or hours worked. This includes, full time, part time, hourly, salary, temporary, seasonal.
How does sick time accrue?	Employees will earn one hour of paid sick time for every 30 HOURS WORKED.
How do we calculate hours for exempt/salary employees?	Exempt employees would accrue based on an assumed 40-hour work week, unless the employee's normal work schedule is less than 40-hours.
When does sick time begin?	For employers with 11 or more employees sick time begins on 2/21/25, then upon hire date thereafter. For employers with 10 or less employees have until 10/1/2025 to start accruing and paying out sick time to employees.
How much earned sick time can an employee use?	Employees can use up to 72 hours of earned sick time per year or the amount they have accrued if less than 72. Employers with 10 or less employees are required to pay 40 hours. Employees with 11 or more employees must pay all 72 hours.
Accrual method vs. Carryover method	All covered employees are eligible to accrue one hour of earned sick time for every 30 hours worked. Employers with more than 10 employees may cap that at 72 hours. Small businesses with 10 or fewer employees may cap that at 40 hours. Employers may choose to use the accrual method and accrue one hour for every 30 hours worked. Employers using this method must carry over up to 72 hours of unused earned sick time (or 40 hours for a small business) to the following benefit year. Employers may choose to frontload 72 hours of paid sick time (or 40 hours for small businesses) at the beginning of a benefit year for immediate use. If an employer chooses to frontload, they are not required to carry over unused hours. Employers are not required to payout unused accrued or frontloaded hours at the end of a benefit year.
Front loading for part-time employees	For part-time employees, employers may frontload hours if: the employer provides the employee with a written notice on how many hours the employee is expected to work in a year at the time of hire. the amount of hours frontloaded is proportional to the hours that the employee would accrue if they worked all of the hours expected. the part-time employee works additional hours, the employer must provide additional hours.
What can an employee use sick time for?	An employer shall permit an employee to use the accrued earned sick time for any of the following: The employee’s or the employee’s family member’s mental or physical illness, injury, or health condition; medical diagnosis, care, or treatment of the employee’s or the employee’s family member’s mental or physical illness, injury, or health condition; or preventative medical care for the employee or the employee’s family member. If the employee or the employee’s family member is a victim of domestic violence or sexual assault, for medical care or psychological or other counseling for physical or psychological injury or disability; to obtain services from a victim services organization; to relocate due to domestic violence or sexual assault; to obtain legal services; or to participate in any civil or criminal proceedings related to or resulting from the domestic violence or sexual assault; For meetings at a child’s school or place of care related to the child’s health or disability, or the effects of domestic violence or sexual assault on the child; and For closure of the employee’s place of business by order of a public official due to a public health emergency; for an employee’s need to care for a child whose school or place of care has been closed by order of a public official due to a public health emergency; or when it has been determined by the health authorities having jurisdiction or by a health care provider that the employee’s or employee’s family member’s presence in the community would jeopardize the health of others because of the employee’s or family member’s exposure to a communicable disease, regardless of whether the employee or family member has actually contracted the communicable disease. An employer shall not require an employee to search for or secure a replacement worker as a condition for using earned sick time.
Waiting period	Employees that have been hired after February 21, 2025 can be required to wait 120 days after beginning employment before using accrued paid earn sick time.
New businesses	New businesses with 10 or fewer employees have a three-year grace period after forming to comply with ESTA.

***For additional questions and answers use the resources below.

Resources - ESTA:

Michigan Dept. of Labor and Economic Opportunity Webinar

Slides from Webinar

Michigan Chamber of Commerce Resources

Michigan Chamber Paid Leave, Minimum Wage Toolkit Downloads <<<< LOTS OF FREE RESOURCES FOR MICHIGAN BUSINESSES

Items included in the MI Chamber Toolkit:

Overview & Highlights Slides
FAQs
Top Things Employers Need to Know
Legal Resources
ESTA Compliance Worksheet
ESTA Resource List
Sample Hanbook Policy
Sample Employee Notification Letter

Need help setting your QuickBooks up to accrue Earned Sick Time?

Use the below steps to walk through getting your QuickBooks Desktop file set up for accruing Earned Sick Time as you process payroll each pay period.