The Detroit Regional Chamber recently joined the Greater Rapids Chamber, the Michigan Association of Manufacturers, Business Leaders for Michigan, the Michigan Small Business Association and the Michigan Chamber of Commerce to welcome the introduction of legislation to regulate Earned Sick Time Act (ESTA)which includes the main changes that the House has been advocating for.
RELATED: Earned Sick Time Updates
Read the full news release below.
Lansing, Michigan – Leaders from Michigan’s top business groups today applauded Michigan lawmakers for introducing legislation to address implementation issues within the Earned Sick Time Act that will take effect in February 2025.
The introduction of the bill was applauded today by the Michigan Small Business Association, Michigan Chamber of Commerce, Business Leaders for Michigan, Detroit Regional Chamber, Michigan Manufacturers Association and Grand Rapids Chamber. The groups have been educating lawmakers on the challenges that will occur when the Earned Sick Time law goes into effect if changes are not made.
“While the bill that was introduced is limited in scope, it is a good first step in making sure that the Earned Sick Time Act is applicable to both employers and employees,” it said. Wendy Block, Senior Vice President of Business Advocacy at the Michigan Chamber of Commerce. “Absent action from the Michigan Legislature, employers will be forced to make drastic changes to their paid time off policies – even if they have a policy that meets or exceeds what is required by law. While employers will be forced to make significant changes, it is the employees who will ultimately lose out.”
“We have been actively meeting with lawmakers to discuss the implementation of the Earned Sick Time Act and appreciate their openness to listening and making sure this law works,” he said. Brad Williams, Vice President of Political Affairs at the Detroit Regional Chamber. “We’re not asking for drastic changes, but simply asking for help for both employers and employees as they work to adapt to a whole new set of workplace laws.”
“Without changes, the ambiguity in the law will bring serious problems for businesses”, he said Josh Lunger, Vice President of Governmental Affairs for the Grand Rapids Chamber. “We have offered a number of very practical solutions to address the issues within the act, and the steps taken today show that lawmakers understand how important it is to address this now.”
The top five concerns about the impact within the Earned Sick Time Act are:
- All employers will be forced to rethink their existing paid time off policies as the act would force employers to separate sick time from other paid time off, even if that is not what employees prefer.
- There are no exemptions based on employee type or business size, which would require all employers with one or more employees to add these costly provisions and rethink their staffing and employment trajectory and service delivery model .
- No-call/no-show provisions will leave businesses in the lurch, exacerbating staff shortages.
- The act automatically favors the employee for adverse personnel actions, which no other state has in the form of a rebuttable presumption and private right of action.
- Employers cannot charge employees leave at the beginning of the year. It has to grow over time, which is not how most companies operate and limits flexibility for employees.
“We’re focused on working with lawmakers to make sure the Earned Sick Time Act’s required policies work for everyone without placing huge financial or personnel burdens on businesses — or forcing businesses out of their flexible paid time off policies in order to comply with the unenforceable provisions of the law,” said Kelli Saunders, Vice President of Policy and Engagement at the Michigan Small Business Association. “With the updates, the Earned Sick Time Act will have a major impact on all employees in the state.”
The group is leading a coalition of more than 70 business organizations calling for common sense changes that will work for Michigan businesses and their employees. The five changes that business leaders have been asking for are:
- Exclude employers with paid leave policies that meet or exceed the number of hours required under the act.
- Add a small employer exemption or expand the current small employee threshold, as is done with the federal Family Medical Leave Act.
- Notification must be required prior to the start of a shift unless an employee is disabled.
- Remove language allowing a private right of action and reputational presumption. Enforcement and penalties should be handled by the state, not the courts.
- Allow employers to pre-load time off to avoid complicated accruals and allow employee flexibility.
“The changes we’re asking for are closely aligned with what employers are doing today with respect to their paid sick leave policies and their vacation policies,” it said. Lindsay Case Palsrok, Vice President of Government Affairs at Business Leaders for Michigan. “We want implementation to work for employers so that all employees can benefit without the additional headaches and complications that this Earned Sick Time Act imposes.”
House Bill 6057, sponsored by Rep. Graham Filler, referred to the House Committee on Regulatory Reform for consideration.
“The 2023-2024 legislative session is winding down and the countdown is on to pass changes to the Earned Sick Time Act before its effective date of February 21,” it said. Dave Worthams, Director of Employment Policy at the Michigan Manufacturers Association. “We urge the legislature to quickly pass this bill.”