UPDATE, 02/21/2025, 12:10 a.m. — SB 8 and HB 4002 passed through both the House and Senate with enough support to go into effect immediately, but Gov. Whitmer has yet to sign the bills.
It’s unclear when she may do so, but has indicated support for some reforms. It is also unclear whether the original policies will be enforced by the state before the bills are signed into law.
The proposals would prevent the original sick time and tipped wage policies from taking effect.
Details on the tipped wage agreement can be found here. Information on the sick time deal as originally introduced is detailed below.
LANSING — The Michigan Senate has put forward a first-pass at a compromise to intervene in upcoming sick time policy changes, which are set to take effect at midnight without action.
Lawmakers still have not approved this proposal, but plan to vote in the coming hours.
Small businesses, front-loading sick time
Under the plan, all workers would still accrue one hour of sick time for every 30 hours worked, though it wouldn’t apply to small businesses until Oct. 1 of this year.
Small business employees would now be limited to only taking 40 hours paid each year, losing the right to 32 additional unpaid hours. A small business would be defined as one with 10 or fewer employees, and all part-time or temporary employees would be counted in that figure.
Large business workers would keep the same sick time rights they have under current law — they’d be able to use up to 72 hours paid per year.
All businesses would be allowed to front-load workers with their sick time for the year, and would not be required to track accrual in that year.
Part-time employees
The proposal allows employers of all sizes to front-load sick time for part-time employees. In those cases, the two parties must agree on how many hours the employee is expected to work in a year, and provide sick time at a rate of one for every 30 hours worked.
For example, a part-time employee expected for 300 hours would be given 10 hours of sick time to be used immediately. If an employee goes over that estimate, they would begin to earn sick time as normal for future hours worked.
No-call, no-shows
An employer looking to avoid no-call/no-shows would need to have a written notice policy that’s provided to their employees upon hiring.
Employers who don’t provide that policy or change it without notifying their workers can not stop employees from taking non-foreseeable sick time.
Returning workers, year-to-year carry over
The proposal also only allows returning employees to retain their sick time for two months off the job. Current law retains that sick time for six months between employment periods.
Employers could also choose to pay out unused sick time when an employee departs.
The proposal allows workers to carry over their annual limit from year-to-year — 40 hours for small business workers and 72 hours for large business employees.
Employers who front-load their hours would not be required to let their workers carry over that time from year-to-year. They also would not be required to pay out unused sick time.
Employers would be allowed to prevent new hires from taking sick days for the first 120 days of their employment, up from 90 in current law.
Employees who believe their sick time rights have been violated would no longer be able to bring civil action against their employer, though they would still be able to file a complaint with the state.
The Legislature remains in session as of Thursday evening and could vote before midnight.
