Small farm employers are subject to the Earned Sick Time Act starting October 1
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EmailSmall employers (10 or fewer employees) are subject to the law beginning on October 1. Requirements for large employers (11 or more employees) took effect in February.
The Earned Sick Time Act, which requires all employers to offer sick leave to their employees, was recently finalized by the Michigan legislature. For large businesses with 11 or more employees, the law went into effect on February 21, 2025. Small businesses with 10 or fewer employees are subject to the law starting October 1, 2025. This article will review the provisions of the Earned Sick Time Act for small businesses.
Under the Earned Sick Time Act, employees will accrue 1 hour of sick time for every 30 hours worked. The law applies to all employees whose physical work location is in Michigan, whether they are salaried or paid hourly and are either full-time or part-time. Employees who schedule their own hours without being penalized for a minimum number of hours are exempt.
Small businesses must allow employees to take up to 40 hours of paid sick leave each year. Large businesses must allow up to 72 hours. The criterion for a large business is that it employs 11 or more employees in 20 or more workweeks in the current or previous calendar year. Other employers are considered to be small businesses. Note that workweeks do not need to be consecutive.
The law provides two options for accrual of sick time:
- Employers can allow employees to accrue sick time on their actual hours worked. Salaried workers are assumed to work 40 hours per week unless their normal hours are less than 40 hours. Employers must allow sick time to be taken as soon as it is accrued, up to 40 hours of sick time per year for a small business (or 72 hours for a large business). Unused hours must be carried over into the following year, up to 40 hours for a small business (or 72 hours for a large business). Employers can restrict employees from using sick time until they have completed 120 days of employment, although they begin accruing hours immediately.
- Employers can “frontload” sick time, providing employees with the full 40 hours of sick time (or 72 hours for a large business) at the beginning of the year. Part-time employees would have a pro-rated number of hours. Under this method, employees can then begin to take sick time as soon as the year begins, up to the required 40 hours (or 72 hours for a large business). There is no carryover requirement for frontloaded hours, but sick time must be made available immediately upon hire.
Sick time must be paid at the employee’s regular hourly wage (or minimum wage if it is higher), not including piece-rate pay, bonuses or overtime. For seasonal employees separating for less than 2 months, accrued sick time must be maintained through the separation. Accrued sick time does not need to be paid out upon the end of employment.
The Earned Sick Time Act provides a wide range of approved uses of sick leave. Time may be taken for the employee’s physical or mental illness, as well as treatment and preventative medical care. Likewise, time can be taken for a family member’s physical or mental illness, treatment, and preventative care. Additional approved uses can be found in the FAQ of the . An employer cannot require that the employee find a replacement worker as a condition of using earned sick time. Current paid time off (PTO) programs can be utilized to meet these requirements as long as they offer at least the required number of hours and allow the use of all ESTA-required sick leave uses.
An employer can require up to 7 days of advance notice for a foreseeable need for sick time. Unforeseeable needs can only require that the employee provide notice as soon as practicable. Some adjustments can be made based on an employer’s stated absence policies. An employer can require documentation for more than 3 consecutive days of used sick time, but leave may not be withheld due to not receiving documentation. Employers must pay for the cost of any documentation that they require from the employee. Small employers must post written notice of employee rights on or after October 1, 2025. The State of Michigan offers posters for employers.
The has a summary of the law updates and a page of Frequently Asked Questions. For further questions about the law, please contact Corey Clark or another member of the Farm Business Management Team at Michigan State University Extension. Owners may need to contact their trusted legal counsel for details on how it might apply to their specific situation.
