The Earned Sick Time Act goes into effect on Friday, February 21st, 2025, legislation that every Michigan employer should be aware of.

Conversations between the Senate and the House are ongoing and have reportedly been productive.

Notable issues being addressed are as follows:

• One PTO Bank: The idea is to have all paid time off (sick days, vacation, etc.) in one place. They’re working out how to prevent loopholes that could be abused.

• Advanced Notice: Lawmakers are debating how much notice employees should give before using sick time. They’re also considering whether the Family and Medical Leave Act (FMLA) should be used as a model.

• Frontloading vs. Accrual: Employers may have the option to give workers their full sick time upfront (frontloading) rather than making them earn it over time (accrual). If frontloading is chosen, tracking and carryover rules could be eliminated.

• Carryover Limits: If employees earn sick time throughout the year instead of getting it all at once, they may be allowed to roll over unused time—up to 72 hours per year.

• How Pay is Calculated: They’re deciding what counts when calculating pay for sick time. The goal is to exclude commissions, tips, and bonuses from that calculation.

• Using Sick Time in Small Amounts: Employees may be able to take sick time in 1-hour increments unless their employer allows even smaller increments.

• Protection from Retaliation: Employees using their earned sick time should be protected from punishment or retaliation, but the details are still being discussed.

• Who Is Covered? (Exemptions): The House wants certain types of employees to be exempt, but the Senate is reticent.



• Impact on Small Businesses: The House is pushing for an exemption for small businesses, but the Senate is only considering a split system where workers get 40 hours of paid sick time and 32 additional hours of unpaid (but job-protected) leave.

The Manistee Area Chamber is keeping tabs on these discussions and will keep you informed on any modifications made to this bill.

The Northern Michigan Chamber Alliance released its fourth quarterly report of the year covering the months of October to December 2024. 

The Alliance focused its work in the fourth quarter on advocating for amendments to the Michigan Earned Sick Time Act (ESTA) and preserving the tipped wage credit.

The Northern Michigan Chamber Alliance is a coalition of 18 chambers and economic development organizations from across northern Michigan. Our coalition exists to advocate for rural northern Michigan and move forward with rural-centric business policy.

Focus is given to supporting the success of existing northern Michigan businesses, developing and attracting a talented workforce in northern Michigan, and maximizing the competitiveness of the rural northern Michigan business environment. The Alliance includes nine Partners, one Supporting Partner, six Associate Partners, and over 7,000 member businesses from across northern Michigan.

Find the NMCA on the web and like us on Facebook! 

Michigan to Invest in Workforce Housing Through New Employer-Assisted Housing Fund

In a recent announcement from Governor Gretchen Whitmer, the State of Michigan is launching the $10 million Employer-Assisted Housing Fund, a new matching fund to boost businesses and address the workforce housing shortage in Michigan. Additional funding may be made possible with further legislative support.

“The Employer-Assisted Housing Fund will bring businesses, local government, developers, and MSHDA together to build housing for employees,” said Governor Whitmer. “If we want people to move to our communities for work, they need affordable places to call home nearby. I’m looking forward to seeing new partnerships built so we can work together to build a heck of a lot more housing, grow local business and our population.”

“We appreciate the Legislature and Governor for funding this new pilot program, which will help us strengthen communities around Michigan’s growing businesses,” said Amy Hovey, MSHDA Chief Executive Officer and Executive Director. “Guided by the Statewide Housing Plan, we’re making strategic investments to align housing development with our state’s needs, job creation and population growth. The new Employer-Assisted Housing Fund will allow us to build on that success and create even more opportunities for Michiganders.”

Applications will be reviewed on a first-come, first-served basis. Eligible uses include construction projects, as well as innovative programmatic approaches to housing opportunity such as down payment assistance.

Each application must include an employer contribution, such as donated land, a cash gift, equity investment, a below-market interest loan, or some combination approved by MSHDA. All housing units funded by the Employer-Assisted Housing Fund must be attainable to income-eligible households.

MSHDA will begin accepting applications on Monday, February 24.