Understanding the Michigan Earned Sick Time Act

Employees in Michigan are entitled to paid sick leave for certain qualified uses under Michigan's Earned Sick Time Act (ESTA). All employers are covered by this law, however, requirements differ depending on the size of your business. Accurate time tracking and benefits administration are vital for HR departments to comply with these guidelines. Here is some important information that all employers need to know about the Michigan sick leave law.

Michigan Earned Sick Time Act

Michigan Earned Sick Time provides employees with the right to accrue and use leave for qualified purposes, giving employees relief when unexpected life events occur. 

Key provisions of ESTA include:

• Accrual Rates & Balances

• Limits on Usage
• Qualified Reasons for Leave
• Employee Protections
• Complaints
• Posting Requirements

Who Is Covered by the Act?

The ESTA applies to all Michigan employers that have one or more employee(s), including any person, firm, business,
educational institutions, corporations, limited liability companies, and government entities, excluding the United States Government.

Michigan Paid Sick Leave Accrual Rates and Rules

No matter the size of the business, employees are entitled to accrue one hour of paid sick leave for every 30 hours worked. Employers may allow employees to accrue paid sick leave at a faster rate if they wish.

Other key provisions around accruals and balances include:

• Employers may allow earned sick time to be carried over from year to year by employees; however, they must outline this in their sick leave policy.
• Employers may pay out unused earned sick time to employees; however, they must outline this in their sick leave policy.
• Employees are entitled to begin accruing sick leave upon commencement of the employee’s employment.
• An employee may use accrued earned sick time as it is accrued; however, employers can choose to implement a 120-day wait period for use for newly hired employees.

Limits on Usage

Allowable limits on use are the most important provisions of the ESTA, as they differ depending on employer size.

Here is a breakdown of usage limits based on employer size: 

• 10 or Fewer Employees: Employers are not required to permit an employee to use more than 40 hours of paid earned sick time in a single year.
• 11 or More Employees: Employers are not required to permit an employee to use more than 72 hours of paid earned sick time in a single year.

It's worth noting that employers may allow employees to use more than 40 or 72 hours of leave in a single year, but no less. 

Qualified Reasons for Leave

Under this law, employers are only required to allow employees to use paid sick leave (earned sick time) for the following reasons or purposes: 

• 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 mental or physical illness, injury, or health condition; or preventative medical care for the employee.
• 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; or
• 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.

It is important to note that employers may not require an employee to search for or secure a replacement worker as a condition for using earned sick time. 

It's crucial that employers outline these qualified reasons for use in their Michigan Earned Sick Time Act Policy.

Additional Employee Protections

An employer may not interfere with, restrain,  deny, or interfere with an employee's attempt to exercise any right protected under the ESTA.

An employer is also prohibited from taking retaliatory personnel action or discriminating against an employee because the employee has exercised a right protected under the ESTA. Retaliatory or discriminatory acts include but are not limited to:

• Denial of any right guaranteed under the ESTA.
• A threat, discharge, suspension, demotion, reduction of hours, or other adverse action against an employee or former employee for exercise of a right guaranteed under the ESTA.
• Sanctions against an employee who is a recipient of public benefits for exercise of a right guaranteed under the ESTA.
• Interference with, or punishment for, an individual’s participation in any manner in an investigation, proceeding, or hearing under the ESTA.

Lastly, any employer with an absence control policy must not treat earned sick time taken under this act as an absence that may lead to or result in retaliatory personnel action. 

Complaints & Penalties

An employee who believes their employer has violated their rights under the ESTA  may file a complaint with the Michigan Wage & Hour Division. Employees may file a complaint up to within 3 years after the alleged violation or the date when the employee knew of the alleged violation.

 If an employer fails to provide earned sick time to a worker, the LEO can impose a civil fine of up to $1,000. Retaliatory actions against an employee over sick time can also warrant a fine of up to $1,000. Failing to post the required workplace notice can result in a $100 fine for each infraction.

Posting Requirements

Employers must provide written notice of an employee’s rights under the ESTA, and find a sample poster here.

Employers should also consider updating their employee handbooks with a policy covering an employees rights to paid sick leave under the ESTA. Employers can find a sample Michigan Earned Sick Time Act Policy below.

Recent Updates

In February, 2025, House Bill 4002 went into effect, which amended the existing Earned Sick Time Act and expanded paid sick leave. 

While this article is up-to-date, employers can get a breakdown of the recent updates to the Michigan Earned Sick Time Act by checking out this article.

Preparing Your Business for Implementation

Time and attendance tracking should be a high priority for employer compliance with sick time laws in Michigan. Even salaried employees need to have their hours tracked in order to comply with ESTA. Employers should also ensure that they provide proper written notice to all employees of their rights under the ESTA.

In addition, proper benefits administration should be prioritized. Paid sick leave hours are entirely separate from paid time off that an employee accrues, and it's important to keep track of these benefits separately. Companies may want to consider outsourcing their HR functions to ensure proper compliance with the ESTA.

Businesses don't have to go it alone. Companies located in Michigan, like us, can help with your Michigan Earned Sick Time Management.

Ensuring Compliance

Don’t let the complexities of the new sick leave laws put your business at risk. Our experienced HR professionals at Workforce PayHub are ready to assist you in every step of compliance. From policy updates to full HR management, we ensure you meet all legal standards while maintaining a happy, healthy workforce. Employers looking to learn more about how Workforce PayHub can help employers manage sick time, check out this Michigan Earned Sick Time Management Demo Video Recording.

Contact us today to learn more. Or, if you are looking for additional Michigan State Resources, check out this page.