Michigan Legislature Sends Minimum Wage and Earned Sick Time Act Bills to the Governor

The Michigan Legislature has officially passed House Bill 4002, amending the existing Earned Sick Time Act (ESTA).  The bill is tie-barred to SB 8 which amends the Improved Workforce opportunity Act (Minimum Wage law).  Both bills were acted upon this week and have been presented to the Governor for her signature.  The debate went right up to the last day before the current acts scheduled implementation on Friday, February 21st. With negotiations finalized in the eleventh hour, the House and Senate reached a compromise that significantly alters ESTA’s provisions and preserves the tipped credit system for tipped workers wages.

SB 8, sponsored by Sen. Hertel (D-Macomb) incrementally increases the minimum wage from $12.48 per hour starting Friday February 21, 2025 and goes up each January until it reaches $15.00 per hour in 2027.  For tipped workers, the minimum wage will be 38% of the regular minimum wage for 2025 and incrementally increase until they are paid 50% of the minimum wage in January 2031. 

The ESTA bill, sponsored by Rep. DeBoyer (R-St. Clair) changed significantly before heading to the Governor.  The bill redefines small employer to mean an employer with 10 or fewer employees.  Their obligations under this bill will require them to provide to their employees 40 hours of paid earned sick time starting October 1, 2025.  These employees will be allowed to carry over up to 40 hours of unused time from year to year.  All other employers with 11 or more employees will be required to provide their employees with 72 hours of paid earned sick time and allow them to carry over unused hours up to 72. 

Employers will have two options of granting their employees earned sick time, either by the accrual method of one hour earned for every 30 worked, or by frontloading the entire time at the beginning of the year.  However, if an employer opts to frontload the hours, they may do so immediately but will not be required to allow carryover of the hours or pay out unused sick time at the end of the year. 

Seasonal Employees cannot use sick time within 120 days of hire, unless the employer opts to front load the hours as opposed to using the accrual method.  For those employees that are rehired within two months, they will be allowed to recoup previously accrued time, but those rehired after two months start fresh on sick time accrual.

Other exemptions from the paid leave act include variable hour employees, unpaid trainees and interns and those youth working under a work permit. 

Employers may frontload sick time for part-time employees but must do so proportionally based on an initial estimated workload, but if the part-time employee exceeds the work hour estimate, then employers must grant them the same as other employees, that is 1 hour per 30 hours worked.

For employee’s usage of the sick time, they must notify the employer at least 7 days prior for foreseeable usage of the time and as soon as practicable or follow the employer’s written sick time policy, for unforeseen sick time, provided the policy allows notice after the employee becomes aware of the need.

Many counties combine sick time and vacation time.  This may continue, but there are parameters around it.  The first 72 hours of paid time off are subject to ESTA conditions.  Any additional leave beyond 72 hours can be used according to employer-defined PTO or vacation policies. 

If the employee is a subject of a collective bargaining agreement, the existing employer contract will remain valid for up to three years from enactment of this law, even if it conflicts with ESTA.  For more information on this issue, please contact Deena Bosworth at bosworth@micounties.org

Michigan Legislature Continues Debate on Earned Sick Time Act and Minimum Wage Law

The Michigan Legislature remains locked in a debate over amendments to the Earned Sick Time Act and the state’s Minimum Wage Law as the February 21, 2025, effective date for current legislation quickly approaches. The House and Senate have proposed differing versions of bills addressing these issues, with key disagreements over tipped worker wages, paid sick leave for small businesses, and accrual policies for seasonal and part-time workers.

Minimum Wage Law Amendments

Two bills—Senate Bill 8 (SB 8) and House Bill 4001 (HB 4001)—aim to amend Michigan’s Minimum Wage Law. While both bills seek to adjust wage structures, the primary difference between them is how they handle wages for tipped workers. The House version, HB 4001, passed over to the Senate a few weeks ago, but the Senate instead voted on SB 8 this week, which includes different provisions regarding what percentage of the minimum wage tipped workers should earn. The ongoing dispute between the chambers could delay resolution on this issue.

Earned Sick Time Act Amendments

Similarly, Senate Bill 15 (SB 15) and House Bill 4002 (HB 4002) propose changes to the Earned Sick Time Act. HB 4002, passed by the House weeks ago, is currently under Senate consideration, while SB 15 remains on the Senate floor after extensive committee discussions. The primary disagreements between these bills center on the number of hours small businesses must provide in paid and unpaid sick leave, as well as the definition of a “small business.” While both chambers have agreed to define small businesses based on employee count, specific thresholds remain unresolved. Additional differences involve how paid sick leave accrues for seasonal and part-time employees.

With one week before the February 21, 2025, effective date, lawmakers face significant pressure to reconcile differences and send final legislation to Governor Gretchen Whitmer. The Governor has suggested that the Legislature pass a bill postponing the effective date to July 2025, allowing more time for debate and potential compromise.

Upcoming Informational Webinar

To assist with understanding the Earned Sick Time Act and its implications, the Michigan Department of Labor and Economic Opportunity will host a webinar on Wednesday, February 19, at 2:00 PM. The webinar will specifically address how the law applies to local governments. Interested participants can join via Microsoft Teams or dial in by phone at (248) 509-0316 using the code 49819075#. 

Follow this link for the Microsoft Teams meeting. Join the meeting now

For more information on this topic, please contact Deena Bosworth at bosworth@micounties.org

House advances rule to tie special spending to immigration policies

A rule advanced out of a key House committee this week that seeks to prohibit appropriations bills from including earmarked spending for municipalities that maintain policies perceived as obstructing federal immigration enforcement.

Under House Resolution 19, a municipality — including any official, department, or board — would be ineligible for “legislatively directed spending” (think earmarks, not regular budget line items) if it:

• Maintains any rule, policy, or ordinance that subverts federal immigration enforcement in any way.
• Refuses to cooperate with federal immigration authorities, including U.S. Immigration and Customs Enforcement (ICE) detainer requests.

Before a municipality could receive legislatively directed spending, HR 19 requires local governments to submit detailed documentation to the House, including:

1. A report on local policies and ordinances related to federal immigration law and enforcement. This must include rules regarding cooperation with ICE and detainer requests and whether the municipality shields undocumented immigrants from federal authorities.
2. A formal certification letter from the municipality’s chief executive officer, elected board, or legal representative, stating that:
   • Local policies do not encourage or support obstruction of federal immigration enforcement.
   • The municipality will comply with federal immigration law.

If HR 19 gains traction, it could have significant fiscal and legal implications for municipalities across Michigan. HR 19 is now before the full House.

For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.

Senate begins debate on Earned Sick Time Act changes

The Michigan Senate Committee on Regulatory Affairs held a hearing this week on Senate Bill 15, by Sen. Sam Singh (D-Ingham), which has several key amendments to the Earned Sick Time Act set to take effect on Feb. 21, 2025. With time running short, the Senate and House must reach an agreement on changes to the law before its implementation.

The amendments in SB 15 would:

• Redefine the definition of a “small business” from one with fewer than 10 employees to one with fewer than 25 employees.
• Reduce the number of hours a small business must provide paid leave to 40 as opposed to larger businesses that remain at 72 hours but requires small businesses to provide an additional 32 hours of unpaid leave.
• Allow businesses to frontload sick time at the beginning of the year instead of accruing it throughout.
• Cap the amount of accrued sick time employees can carry over each year to 144 hours if it gets paid out and 288 if it does not.

This Senate proposal follows the House’s passage of House Bill 4002 last week, which takes a more business-friendly approach. The bill, which MAC backs:

• Exempts businesses with fewer than 50 employees from the Earned Sick Time Act.
• Narrows employee eligibility, excluding independent contractors, out-of-state workers, seasonal employees (working 25 weeks or fewer), part-time employees (25 hours or less per week) and variable-hour employees.
• Provides two accrual models:
  • Frontloading Model: Employers give up to 72 hours of sick time at the start of the year, with no carryover requirements.
  • Accrual Model: Employees earn one hour of sick time per 30 hours worked, capping at 72 hours annually. Carryover is limited to 72 hours unless the employer allows more. Employers may opt to pay out unused time to avoid carryover.
• Allows employers to integrate sick time with existing PTO policies for administrative efficiency.
• Clarifies sick time pay rates, excluding bonuses, tips, commissions, overtime and holiday pay.
• Permits employers to set documentation, notice and disciplinary policies for sick time use.

With the Earned Sick Time Act’s effective date quickly approaching, the Senate and House must reconcile their versions of the amendments. Business groups have expressed strong support for HB 4002’s broader exemptions, while worker advocacy groups favor SB 15’s more limited revisions. The debate in Lansing now centers on how much flexibility businesses should have while ensuring employees retain adequate sick leave protections.

For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.

 

Oakland’s Taub, a former MAC Board president, passes at age 85

Taub

Shelley Goodman Taub, former Oakland County commissioner and president of the Michigan Association of Counties in 2016-17, passed away on Feb. 4, 2025, after a brief illness. She was 85.

“Shelley’s life of public service never ceased to impress,” said MAC Executive Director Stephan Currie, “She wanted to serve, she enjoyed serving and she committed the time and energy to be effective for her county, her state and MAC.”

Taub did two long stints on the Oakland Board, interrupted by two terms in the Michigan House, 2003-2006.

Taub was first elected to the MAC Board in 2012 and quickly rose into the leadership ranks to become president for the 2016-17 member year.

During her year as MAC president, Taub led a historic delegation of Michigan commissioners to a special White House briefing in August 2017 and continually championed a county role in arts and culture as chair of the Arts and Culture Commission of the National Association of Counties.

In her inaugural address at the 2016 Annual Conference, Taub said,

“‘One size does not fit all.’ This is an oft-repeated phrase that is intended to convey to the listener that the speaker understands your pain; that the speaker truly grasps the problem.

“The speaker of ‘one size does not fit all’ remembers the old fairy tale about the glass slipper and that you, the commissioner, have been wandering around the country like the prince with an idea or a mandate that does not fit, does not work, trying to squeeze into that slipper, particularly when the state or feds send us the slipper, the shoebox and the bill. … So, what do we do and how do we comply and how in this state or this world can we squeeze a size 10 foot into a size 6 slipper?”

Taub then announced the creation of a message board system for county commissioners to share best practices, questions and ideas, all to leverage the collective wisdom of Michigan’s hundreds of county commissioners. The Commissioners Forum continues to operate today.

In 2016, Taub was selected for the 2016 class of the Women in Government Program operated by the Governing Institute to increase female participation in public service.

Taub also served on NACo’s Board of Directors.

 

Sign up now for the 2025 Michigan Counties Legislative Conference in Lansing

The 2025 Michigan Counties Legislative Conference will be held April 7-9, 2025, at the DoubleTree Hotel in Lansing.

The event, co-hosted by the Michigan County Medical Care Facilities Council, will feature a new format that ensures no MAC member misses any informational session that interests them.

This year, those sessions will include updates on such issues as cybersecurity, Michigan’s housing crunch, road funding options, the state’s juvenile bed shortage and much more! All of these educational sessions will be plenary sessions, meaning no overlapping events or choices to be made.

Special events at the conference include:

• A Strolling Dinner on the opening night for mingling with colleagues and MAC’s Premier Corporate Partners
• A Legislative Reception, during which MAC will honor its “Legislative Advocates” for 2024
• Presentation of certificates to members of the 2025 class of County Commissioner Academy

Member pricing for the conference is $425 for all events, though one- and two-day packages are available. Any elected or appointed county official or member of MCMCFC may use member pricing.

To start your registration, go to https://bit.ly/2025LCregister.

MAC has secured a room block at the DoubleTree, with a per-night rate of $189. To secure that hotel rate, register directly with the hotel by clicking here.

We look forward to seeing you at the DoubleTree Hotel in downtown Lansing!

 

Blue Cross to host webinar on using Health Savings Accounts

Health Savings Accounts (HSAs) are increasingly part of top employers’ benefits offerings. In this employer-requested webinar, Blue Cross, a MACSC sponsored program and MAC Premier Partner, will explore the ways employers and employees can benefit from an HSA. Whether the HSA enables employers to offer a lower-premium plan, enhance retirement planning strategies or reduce the tax burden for employees and the organization, it is a core element to a comprehensive benefit package.

Join Blue Cross on Thursday, Feb. 20 from 11 a.m. to 12 p.m. Eastern time as they discuss:

• Tax advantages for employers and employees
• How HSAs can be an important component of retirement planning for employees
• How employers can communicate effectively with employees across their organization about the advantages HSAs provide and how to make the most of them

Register here.

 

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