Michigan Earned Sick Time Act Effective February 21, 2025
Effective February 21, 2025, Michigan will update the Paid Family Leave Act by enacting the Michigan Earned Sick Time Act (ESTA). The Paid Family Leave Act was only for bigger businesses (50 or more employees). The expanded Earned Sick Time Act will affect all Michigan employers with 1 or more employees (except for those employed by the US Government).
Key Provisions
- Employees accrue sick time ast a rate of 1 hour for every 30 hours worked
- Businesses with 10 or more employees must allow at least 72 hours of paid sick time per year to be used to the extent the leave is accrued
- Businesses with fewer than 10 employees must allow at least 40 hours of paid sick time annually, plus an additional 32 hours of unpaid sick time to the extent the leave is accrued.
- Unused sick time can be carried over, but employer may limit annual use to no more than 72 hours
- Employees have the right to pursue action if an employer interferes with or retaliates against use of ESTA benefits, including through private action.
When can employees use sick time?
- For the employee’s mental or physical illness, injury, or health condition; medical diagnosis, care, or treatment of the employee’s mental or physical illness, injury, or health condition; or preventative medical care for the employee.
- For the employee’s family members mental or physical illness, injury, or health condition; medical diagnosis, care, or treatment of the employee’s family members mental or physical illness, injury, or health condition; or preventative medical care for a family member of the employee.
Tracking Michigan Earned Sick Time in QuickBooks Payroll
For Michigan employers that use QuickBooks Payroll, we fully support the ability to track Michigan Earn Sick Time whether you use QuickBooks Desktop or Online Payroll.
If you are already tracking paid time off in QuickBooks Payroll (Desktop or Online), you’ll need to review your current paid time-off (PTO) policy(s) to help ensure you meet the minimum requirements outlined above. If you aren’t currently tracking paid time off, you can set up a new policy to track Michigan Earned Sick Time.
Follow the steps outlined in our PTO article for detailed instructions on setting up, or adjusting paid time off for your employees.
For more information on Michigan’s Earned Sick Time Act, we recommend that you visit the agency's website.
