Michigan Business Groups Applaud Legislators for Taking First Step to Address Issues With Impending Earned Sick Time Act

The Detroit Regional Chamber recently joined the Grand Rapids Chamber, Michigan Manufacturers Association, Business Leaders for Michigan, the Small Business Association of Michigan, and the Michigan Chamber of Commerce in applauding the introduction of legislation to fix the Earned Sick Time Act (ESTA), which includes key changes that the Chamber has been advocating for.

RELATED: Earned Sick Time Updates

Read the full news release below.

Lansing, Michigan – Leaders from Michigan’s key business groups today applauded Michigan legislators for introducing legislation to address implementation issues within the Earned Sick Time Act that will take effect in February of 2025.

The bill introduction was applauded today by the Small Business Association of Michigan, Michigan Chamber of Commerce, Business Leaders for Michigan, Detroit Regional Chamber, Michigan Manufacturers Association, and the Grand Rapids Chamber. The groups have been educating lawmakers on the challenges that will occur when the Earned Sick Time Act goes into effect if no changes are made.

“While the bill that was introduced is limited in scope, it is a good first step toward making sure the Earned Sick Time Act is workable for employers and employees alike,” said Wendy Block, Senior Vice President of Business Advocacy at the Michigan Chamber of Commerce.  “Absent action by the Michigan Legislature, employers will be forced to make drastic changes to their paid time off policies – even if they have a policy that meets or exceeds what’s required under the Act. While employers will be forced to make significant changes, it is employees who will ultimately lose.”

“We have been actively meeting with lawmakers to discuss the implementation of the Earned Sick Time Act and we appreciate their openness to listen and to make sure this law works,” said Brad Williams, Vice President of Political Affairs at the Detroit Regional Chamber. “We’re not asking for drastic changes, rather we are simply looking for help for both employers and employees as they work to adapt to an entirely new set of workplace laws.”

“Without changes, the ambiguity in the law will cause serious problems for businesses,” said Josh Lunger, Vice President of Government Affairs for the Grand Rapids Chamber. “We have offered a very practical set of solutions to address the issues within the act and the steps taken today show that lawmakers understand how important it is to address this now.”

The top five concerns about the impact within the Earned Sick Time Act are:

• All employers will be forced to rethink existing paid leave policies as the act would force employers to separate sick time out from other offered leave, even though that’s not what employees prefer.

• No exemptions based on the type of employee or size of business, which would require all employers with one or more employees to add these costly provisions and rethink their staffing and hiring trajectory and service delivery model.

• No-call/no-show provisions will leave businesses in the lurch, exacerbating staffing shortages.

• The Act automatically assumes the employee’s side for unfavorable personnel actions, which no other state has in the form of a rebuttable presumption and private right of action.

• Employers can’t frontload employees’ time off at the beginning of the year. It must accrue over time, which isn’t how most companies operate, and restricts flexibility for employees.

“We are focused on working with legislators to make sure the required Earned Sick Time Act policies work for everyone without placing large financial or staffing burdens on businesses – or forcing businesses to walk away from their flexible paid time off policies in exchange for a sick time policy in order to comply with the unworkable provisions of the Act,” said Kelli Saunders, Vice President of Policy and Engagement at the Small Business Association of Michigan. “With updates, the Earned Sick Time Act will have a great impact on all employees in the state.”

The group is leading a coalition of more than 70 business organizations calling for common sense changes that will work for Michigan businesses and their employees. The five changes business leaders have asked for are:

• Exempt employers with paid leave policies that meet or exceed the number of hours required under the act.

• Add a small employer exemption or expand the current small employee threshold, as is done with the federal Family Medical Leave Act.

• Notification should be required prior to the start of a shift unless an employee is incapacitated.

• Remove the language allowing a private right of action and reputable presumption. Enforcement and penalties should be handled by the State, not the courts.

• Allow employers to frontload time off to avoid keeping complicated accruals and to allow for employee flexibility.

“The changes we are asking for closely match with what employers are doing today as it relates to paid sick leave policies and their vacation policies,” said Lindsay Case Palsrok, Vice President of Government Affairs at Business Leaders for Michigan. “We want implementation to work for employers so that all employees can benefit without the extra headaches and complications this Earned Sick Time Act imposes.”

House Bill 6057, sponsored by state Rep. Graham Filler, was referred to the House Committee on Regulatory Reform for consideration.

“The 2023-24 legislative session is winding down and the countdown is on to get changes passed to the Earned Sick Time Act before its February 21 effective date,” said Dave Worthams, Director of Employment Policy at the Michigan Manufacturers Association.  “We urge the Legislature to move this bill through quickly.”