MichiganHB 40022025-2026 Regular SessionHouseWALLET

Labor: benefits; requirements for an employer to provide earned sick time, modify. Amends title and secs. 2, 3, 4, 5, 6, 7, 8 & 12 of 2018 PA 338 (MCL 408.962 et seq.) & adds sec. 3a. Last Action: assigned PA 2'25 with immediate effect

Sponsored By: Sponsor information unavailable

Signed by Governor

Labor: benefits

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Bill Overview

Analyzed Economic Effects

15 provisions identified: 1 benefits, 2 costs, 12 mixed.

Small-business workers face sick-time start delays

Small businesses were exempt from sick-time accrual, upfront allotments, and accrual tracking until October 1, 2025. A separate delay covers small employers that had no employees on or before February 21, 2022. Those employers do not have to follow the law until 3 years after first hiring an employee. Workers at those businesses wait longer for the law's protections.

Broader employer coverage, but some workers excluded

Michigan's sick-time law covers employers with at least one worker, including nonprofits, but excludes the federal government. Federal workers and workers employed under Michigan youth employment standards are excluded. Some self-scheduling workers are excluded when employers cannot punish them for failing to schedule minimum hours. Qualifying unpaid trainees and interns are also excluded; their training must benefit them and carry no right to wages.

Larger-employer workers get capped sick time

Workers at employers that are not small businesses earn at least 1 paid sick hour per 30 hours worked. Hours used as paid time off do not earn more sick time. Employers can cap yearly use at 72 hours or choose a higher limit. They can instead provide at least 72 hours at the year's start for immediate use.

Shared plans offer leave with payment risks

Employers can meet sick-time duties through union-required contributions to a multiemployer plan meeting the law's benefit, use, and accrual standards. Beginning February 21, 2025, qualifying plans provide eligible current-agreement and past-service leave without a 120-day wait. Past-service leave must come from another employer contributing to the same plan. Contributions are due with other fringe-benefit contributions. Employers that miss required contributions violate the law, but the plan need not pay the affected sick-leave benefits.

Small-business workers get capped paid sick time

Small-business workers earn at least 1 paid sick hour per 30 hours worked; paid time off does not earn more hours. Employers can cap yearly use at 40 paid hours, choose a higher limit, or provide 40 hours upfront for immediate use. The prior right to extra unpaid sick time is removed. Small businesses have 10 or fewer paid workers in a week, counting full-time, part-time, temporary, and staffing-agency workers. Employers lose small-business status after exceeding 10 payroll employees for at least 20 workweeks in this year or last year.

Workers earn leave but may wait

Accrual starts on the law's effective date or the job's start date, whichever is later, subject to small-business delays. Workers generally can use time as they earn it. Employers can require hires after the 2025 changes took effect to wait up to 120 calendar days before use. Overtime-exempt workers count as working 40 hours weekly unless their normal week is shorter. Workers covered by 29 CFR 825.801 count as working at least 40 hours weekly, or 30 at small businesses.

Workers get broad sick-leave uses, limits

Beginning February 21, 2025, available earned sick time covers personal medical needs and family care. Family includes someone whose close relationship is like family. Covered uses also include domestic-violence or sexual-assault services, a child's school or childcare health needs, and public-health closures or exposures. Sexual-assault-related leave uses a narrower definition: Penal Code sections 520b, 520c, 520d, 520e, and 520g remain covered, but 520f is removed.

Workers get carryover or upfront leave

Unused accrued sick time carries over: up to 40 hours at small businesses or 72 elsewhere, unless employers choose higher limits. Carryover does not raise the employer's annual use limit. Employers providing the required upfront allotment can skip carryover, accrual tracking, and year-end payment for unused time. Part-time upfront allotments must match expected yearly hours disclosed in writing at hire; extra hours worked earn extra sick time. General paid time off can satisfy the law if enough time is available for covered uses, without an extra sick-time bank.

Workers get protected sick-time pay rates

Paid sick time must pay the greater of your normal hourly or base wage and Michigan's minimum wage. Employers do not have to include overtime, holiday pay, bonuses, commissions, supplemental pay, piece-rate pay, tips, or gratuities. Your sick-time pay can therefore differ from your usual total earnings.

Workers gain penalties against sick-time violations

Employers cannot block lawful sick-time use or retaliate for using leave, filing complaints, or helping an investigation. Lawful leave cannot count against workers under absence-control policies. Beginning February 21, 2025, retaliation against an employee or former employee carries a civil fine up to $1,000 per violation. Failure to provide required leave carries a fine up to 8 times the worker's normal hourly wage, plus civil remedies. These fines are not identified as payments to workers.

Existing contracts can delay workers' sick-time rights

Conflicting union agreements in effect on February 21, 2025, delay the law until their stated end date. Individual contracts also qualify if both parties signed by December 31, 2024, and the term is no longer than 3 years. Those contracts must conflict with the law and be reported to the department. A signed employer policy does not qualify. Wording extending either agreement to a later date, event, or replacement agreement does not move its stated end date for this delay.

Workers face proof rules with safeguards

Workers can use sick time in 1-hour blocks or the smallest block used for other absences. Employers can require reasonable documentation for leave lasting more than 3 consecutive days, due within 15 days of a request. They cannot delay leave while waiting, and must pay the cost of obtaining required documentation. For domestic violence or sexual assault, workers choose among accepted records, including police, court, medical, or victim-services records. Employers must keep medical and abuse details confidential beyond necessary verification.

Workers keep leave, with shorter rehire protection

Accrued leave stays with workers who transfer within an employer or remain employed by a successor employer. Beginning February 21, 2025, rehires receive unused leave back only within 2 months, down from 6 months. Rehired workers can use restored time and earn more. Employers that pay the value of unused leave at transfer, separation, or succession no longer owe the related retention or restoration protections. Employers otherwise need not pay unused leave at separation unless they agreed to do so.

Workers face narrower sick-time dispute protections

Employers can discipline workers for uncovered sick-time uses or violations of the law's notice requirements. The law removes the former 90-day rule presuming a violation after certain protected activity. Workers can file a claim with Michigan's Department of Labor and Economic Opportunity within 3 years of a violation. The department must investigate, but the law removes the express option to bring a civil case directly.

Workers receive sick-time notices and safeguards

Employers can require up to 7 days' notice for planned leave and reasonable written notice procedures for unexpected leave. Unexpected-leave policies must allow notice after workers learn they need leave. Workers must receive the policy on the latest of hiring, the law's effective date, or the policy's start date. Employers cannot deny unexpected leave after failing to provide the policy or notify workers of changes within 5 days. Rights notices are due at hiring or within 30 days after February 21, 2025, whichever is later; accessible posters are required. Notices and posters must use English and Spanish, plus department-translated languages spoken first by at least 10% of workers.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 174 • No: 77

Senate vote • 2/20/2025

PASSED; GIVEN IMMEDIATE EFFECT

Yes: 26 • No: 10 • Other: 1

House vote • 2/20/2025

roll call

Yes: 81 • No: 29

House vote • 1/23/2025

passed; given immediate effect

Yes: 67 • No: 38 • Other: 5

Actions Timeline

  1. assigned PA 2'25 with immediate effect

    2/25/2025House
  2. filed with Secretary of State 02/21/2025 01:10 PM

    2/25/2025House
  3. approved by the Governor 02/21/2025 11:40 AM

    2/25/2025House
  4. presented to the Governor 02/21/2025 01:30 AM

    2/25/2025House
  5. bill ordered enrolled

    2/20/2025House
  6. title amendment agreed to

    2/20/2025House
  7. roll call Roll Call #12 Yeas 81 Nays 29 Excused 0 Not Voting 0

    2/20/2025House
  8. Senate substitute (S-3) concurred in

    2/20/2025House
  9. rule suspended

    2/20/2025House
  10. laid over one day under the rules

    2/20/2025House
  11. returned from Senate with substitute (S-3) with immediate effect and title amendment

    2/20/2025House
  12. RETURNED TO HOUSE

    2/20/2025Senate
  13. TITLE AMENDED

    2/20/2025Senate
  14. PASSED; GIVEN IMMEDIATE EFFECT ROLL CALL # 10 YEAS 26 NAYS 10 EXCUSED 1 NOT VOTING 0

    2/20/2025Senate
  15. AMENDMENT(S) DEFEATED

    2/20/2025Senate
  16. PLACED ON IMMEDIATE PASSAGE

    2/20/2025Senate
  17. RULES SUSPENDED

    2/20/2025Senate
  18. PLACED ON ORDER OF THIRD READING WITH SUBSTITUTE (S-3) AS AMENDED

    2/20/2025Senate
  19. SUBSTITUTE (S-3) AS AMENDED CONCURRED IN

    2/20/2025Senate
  20. REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITH SUBSTITUTE (S-3) AND AMENDMENT(S)

    2/20/2025Senate
  21. RULES SUSPENDED FOR IMMEDIATE CONSIDERATION

    2/20/2025Senate
  22. PLACED ON ORDER OF GENERAL ORDERS

    2/20/2025Senate
  23. DISCHARGE COMMITTEE APPROVED

    2/20/2025Senate
  24. REFERRED TO COMMITTEE ON REGULATORY AFFAIRS

    2/4/2025Senate
  25. PASSED BY HOUSE WITH IMMEDIATE EFFECT

    2/4/2025House

Bill Text

  • Public Act

    2/21/2025

  • As Passed by the House

    2/20/2025

  • As Passed by the Senate

    2/20/2025

  • House Concurred

    2/20/2025

  • Introduced

    1/9/2025

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