MITA staff has heard from a lot of members regarding the new Earned Sick Time Act (ESTA) and the changes that go into effect on February 21, 2025 that could impact every MITA company. Most of you have probably read in the paper regarding this and a minimum wage issue that is also set to go into effect on the 21st of this month. The Legislature is currently debating changes to the law before it goes into effect and the House of Representatives has already passed a more business friendly approach to the new law.
In 2018 a citizens initiative collected enough signatures to amend the state’s sick leave act and the minimum wage act. The Legislature, at that time, adopted and amended the initiative within the same legislative session. In July of 2024 Michigan’s Supreme Court rules that to be unconstitutional and put an effective date of February 21, 2025 for the act.
A large coalition of business organizations, including MITA have been working with lawmakers in an attempt to make the act more reasonable to employers. Legislation that MITA supports has passed the House and is being negotiated in the Senate. Attached is a document that breaks down the differences of the House compromise version and the Senate introduced version. The state has set up a really good frequently asked questions section on what the law affects and what employers would be required to do if the legislature does not act and nothing changes. That can be found here FAQs.
The biggest sticking point in the negotiations between the House and Senate are the exemptions to the law. It appears that house and senate leaders will sit down this week to discuss. With the house now under Republican control, whatever the Senate passes will have to be approved by the House and thus be negotiated before it goes to the Governor for signature.
With February 21st right around the corner, we suggest MITA members begin to make preparations to comply with the law as written but keep a close eye on updates from us on the progress of our legislative solution.
If you have any questions or concerns, please contact Rob Coppersmith, Executive Vice President, at robcoppersmith@thinkmita.org or Lance Binoniemi,
Vice President of Government Affairs, at lancebinoniemi@thinkmita.org.
