Starting today, Friday, February 21, 2025, the Earned Sick Time Act

is officially in effect. Please remember that this law applies to nearly all employers, regardless of size or industry.

The Michigan Chamber of Commerce has a list of Frequently Asked Questions that gives a general overview of the legislation. Keep in mind that this information is not intended as legal advice and may be updated at any time.

Tools for employers: The Michigan Chamber will be updating their compliance toolkit as they receive further details on SB 8 and HB 4002. The Manistee Area Chamber also has a page on our website with resources.

CURRENT REQUIREMENTS FOR SMALL BUSINESSES (1-9 employees)

Employees of a small business shall accrue a minimum of one hour of earned sick time for every 30 hours worked but, shall not be entitled to use more than 40 hours of paid earned sick time in a calendar year unless the employer selects a higher limit. If an employee of a small business accrues more than 40 hours of earned sick time in a calendar year, the employee shall be entitled to use an additional 32 hours of unpaid earned sick time in that year, unless the employer selects a higher limit. Employees of a small business must be entitled to use paid earned sick time before using unpaid earned sick time.

CURRENT REQUIREMENTS FOR OTHER BUSINESSES (10+ employees)

At businesses with ten or more employees, employees shall accrue a minimum of one hour of paid earned sick time for every 30 hours worked but shall not be entitled to use more than 72 hours of paid earned sick time per year, unless the employer selects a higher limit. Salaried employees who are exempt from overtime requirements under section 13(a)(1) of the Fair Labor Standards Act, 29 USC 213(a)(1), are assumed to work 40 hours in each workweek unless the employee’s normal work week is less than 40 hours, in which case earned sick time accrues based upon that normal workweek.

The Manistee Area Chamber of Commerce, as a member of the Northern Michigan Chamber Alliance, helped advocate for key changes that would ease potential burdens on small businesses. Please note that the law and these changes are not final until it is signed by the Governor. After the legislation passed the bills, the Governor received the bill at 1:30 AM and as of right now, are still awaiting her signature.

Although the NMCA did not get all of the changes advocated for, the most pressing were addressed. Key changes include the following:

• Nonprofit organizations are exempted from HB 4002

• New businesses will have a three-year grace period to comply

• Small businesses (1-9 employees) will have until October 1, 2025 to comply

• Small business accrual (1 hr/30 hours worked) remains the same as for larger businesses, but employees will only be eligible for 40 hours of annual paid leave, with no unpaid leave, unlike larger businesses that are allowed to cap at 72 hours. 

• Carryover is capped at 72 hours for larger employers.

• Frontloading of paid leave is allowed and tracking of only time used is required. No carryover required if it is frontloaded.

• New employees can be required to wait until their 120th day of employment to begin using paid sick leave. (We anticipate that this will help seasonal employers.)

• Much more detail to come once it is distilled from the legislation.

The MI Chamber will be hosting a member-only webinar with live Q&A in regards to the ESTA.

Monday, February 24 from 12-1 PM

CLICK HERE TO REGISTER

The Manistee Area Chamber will be broadcasting this webinar in-person at 400 River Street, Manistee MI in Classroom B at 12 PM.

There will also be a compliance webinar with their legal partners at Varnum.

Thursday, February 27 from 12-1 PM

MORE INFORMATION WILL BE POSTED HERE

On Wednesday, the minimum wage legislation (SB 8) the minimum wage rate increases from $10.56/hour to $12.48 on Feb. 21, 2025; $13.73 on Jan. 1, 2026; and $15 Jan. 1, 2027.

From there, inflationary increases will follow Jan. 1, 2028, and each subsequent year using the Midwest Consumer Price Index (CPI). For tipped employees, the tipped minimum wage will stay at 38% in 2025 and jump 2% per year beginning in 2026 until it hits 50% in 2031.

The legislation also added a $2,500 fine to be assessed to employers who fail to ensure tipped workers get paid at least minimum wage.

The Michigan Department of Labor & Economic Opportunity (LEO) has released the new "Improved Workforce Opportunity Wage Act" (IWOWA) posting. Employers must post by February 21, 2025. The law covers employers with two or more employees. It increases the minimum wage and provides a higher hourly wage for tipped employees.

LEO has released the Earned Sick Time Act (ESTA) posting, also required to be posted by February 21, 2025. The new law requires employers to pay all employees - including part-time and seasonal employees - sick time based on their hours worked and the number of employees.

You are required by law to post these updates to remain compliant. Print both and hang them next to your 2024 poster.

The Michigan Chamber has produced the 2025 poster that includes both mandatory updates. Shipping begins this week, and all current poster customers will receive them by early March. When you receive your 2025 poster, remove everything else and post the 2025 poster.

Governor Gretchen Whitmer will deliver her seventh State of the State Address on Wednesday, February 26, 2025. However, you can watch from the comfort of your home.

During her 2025 State of the State Address, Governor Whitmer will lay out her plans to continue building on the historic accomplishments of her first six years in office. Her proposals will focus on creating jobs, lowering costs, continuing record investments in education, and so much more. 

The Michigan State Housing Development Authority (MSHDA) has launched the First-Generation Down Payment Assistance program, to help first-generation homebuyers with up to $25,000 in down payment assistance. This $8 million initiative aims to cover homebuying costs like down payments, closing costs, and prepaid expenses.

To qualify, applicants must be first-time buyers with no prior homeownership in the last three years, meet income and credit score requirements, and use the property as a primary residence. The program is available statewide and is designed to increase homeownership opportunities and break down financial barriers.

Governor Gretchen Whitmer has been selected by President Donald Trump to continue serving as one of 10 governors on the Council of Governors. This bipartisan group brings together governors from across the country to work with federal agencies on critical issues such as homeland security, National Guard operations, disaster response, and other security and safety measures. 

The Manistee Area Chamber encourages you to stay educated on how to contact your local legislators. Use the links below for information on your local state representative, state senator, and how to contact the Governor's Office.