The Michigan Supreme Court, in a 4-3 decision handed down July 31, overruled the state legislature and reinstated paid sick leave laws passed via ballot initiative.The state legislature had reacted to the laws by greatly weakening them prior to the new state governor taking office, switching the executive branch to Democratic control under Gretchen Whitmer.The legislators “adopt and amend” methodology was called out by the court as unconstitutional, and the original measures approved by voters now take effect February 21, 2025.
The Earned Sick Time Act provides employees with one hour of paid sick time for every 30 hours worked, up to a total of 72 hours annually.Small employers, defined as having fewer than 10 employees, would be required to offer a hybrid program of up to 40 hours of paid sick leave and 32 hours of unpaid sick leave annually.Employers that already have policies providing at least the required amount will be considered compliant.
It is important to note that carryover will also be required.Earned sick time will carry over from year to year up to the yearly maximums.Employers should also be aware of the retaliation provision included in the Earned Sick Time Act.Employers are presumed to have violated to have violated the Act if they terminate employees within 90 days of use of a sick day, which may cause conflict with specific employer attendance policies.
Paid sick leave continues to be a hot topic in state legislatures.While the Federal Family and Medical Leave Act guarantees up to 12 weeks leave, that time is unpaid.As of this decision, some 16 states plus the District of Columbia have paid sick leave laws in place.Employers need to ensure they are adequately tracking these laws, as they invariable have steep penalties attached regarding employer responsibilities.In addition, many of these laws call for provision of specific notifications that outline employee rights.
Experian Employer Services will continue to provide legislative and regulatory updates as items affective employers develop.