UPDATE, 02/13/2025, 10 p.m. — Lawmakers reached an agreement to intervene in upcoming tipped wage changes Thursday evening. They have not yet passed any legislation impacting the sick time policies discussed below.
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LANSING — Michigan lawmakers still have not reached a deal on legislation to intervene in upcoming sick time changes, which will go into effect Feb. 21 without any action.
Northern Michigan businesses are sharing concerns about the impacts that these policies may have, and they’re growing frustrated with the lack of certainty from the state government.
“We’ve been hesitant to sink a lot of resources into figuring out exactly what we’re going to do, because the the range of options seems to be just so darn wide,” said Bill Mansfield, owner of Lavender Hill Farm.
Under the incoming policies, small business workers are entitled to 40 hours of paid sick time and 32 hours of unpaid sick time per year, while large business employees would be able to take up to 72 hours of paid sick time per year. Small businesses would be defined as those with less than 10 employees.
Workers at businesses of all sizes will accrue one hour of sick time for every 30 hours worked. Sick time can be carried over from year to year, though employers aren’t required to grant more than 72 hours of sick time per year.
Business owners say they’re concerned about the impact that the policies, including the administrative burden of tracking hours worked and sick time use, could have on their businesses.
“It’s just one more thing, you know, that we’ve got to deal with and try to get our arms around to develop a policy about it, and without really knowing what the final answer is going to be here.”
Lawmakers have been engaged in discussions about possible interventions in recent weeks, but have yet to come to an agreement.
Under the upcoming changes, known as the Earned Sick Time Act, businesses can require up to seven days notice for foreseeable sick time use, but can only require documentation following three consecutive days of leave.
“We have clients where it’s literally a life or death situation if their caregiver doesn’t show up,” said Russ Knopp, co-owner of Comfort Keepers of Northwest Michigan.
Republicans and Democrats still remain split on how to best address the upcoming changes. The Republican House plan — HB 4002 — would exempt all businesses with less than 50 employees, providing no sick time requirements for smaller outfits.
The Democratic Senate proposal — SB 15 — would keep the same small and large business differences, but define a small business as one with less than 25 employees.
Gov. Gretchen Whitmer has encouraged lawmakers to extend the policies’ implementation until July 1, though that too would need to go through the legislative process of both chambers.
Business owners and advocates say that while they’re supportive of some proposals currently being discussed, a delay may help ensure that a solution isn’t rushed through.
“I think any postponing of the implementation would be good so we can educate so many small business owners that don’t know that this is coming and are going to get themselves into a pickle right out of the start if they don’t know,” Knopp said.
The House and Senate were still not on the same page by late afternoon Thursday, potentially pushing the issue into next week.