On January 9, the day after Republicans took control of the State House, a bill (House Bill 4002) was introduced that will make common sense changes to the Earned Sick Time Act (ESTA) set to take effect on February 21, 2025, after a Michigan Supreme Court ruling regarding “adopt and amend”.

The specially created House Select Committee on Protecting Michigan Employees and Small Businesses has scheduled hearings on this bill and HB 4001 which reinstates the tip credit for servers. Hearings are scheduled for Tuesday, January 14 and Thursday January 16, 2025. NFIB State Director Amanda Fisher and NFIB member Ann Chaffee, owner of Maurer’s Sanitary Cleaners in Lansing testified before the committee on January 14 in support of the changes.

Major changes included in House Bill 4002 include*:
• Exempt all employers with less than 50 employees
• Exempt part-time and seasonal employees
• Requires one hour for every 30 hours worked, but allows it to be front loaded, include holidays, vacation, etc.
• Require notification procedures consistent with the business’ regular absence policies
• Removes the rebuttable presumption regarding complaints (guilty until proven innocent)
• Removes the ability for the employee to directly sue an employer

*It is important to note that all of these provisions may not wind up in any final legislation given the political dynamics of the senate and governor’s office being held by Democrats.

Senate Democrats, who remain in majority, then introduced Senate Bill 15, which made few substantial changes to help small business owners. However, the introduction of a bill signals that chamber’s willingness to finally engage in discussions on ESTA.

NFIB is hopeful that the House will vote out HB 4002 soon so that negotiations can begin in earnest with the Senate and a final bill can be completed before February 21, 2025. In the meantime, small business owners are encouraged to make preparations to comply with ESTA as written in order to be in compliance if legislation cannot be passed.

NFIB will continue to keep members updated as it continues to fight for changes to this small business killing law.

Let your legislators know how important it is to make changes to the Earned Sick Time Act HERE!

Click HERE to see the differences between the current law, House Bill 4002, and Senate Bill 15.