LANSING, Mich. (Dec. 3, 2024) – The National Federation of Independent Business (NFIB), Michigan’s leading small business advocacy organization, urges members of the House and Senate to take swift action in passing fixes to laws put in place by the Michigan Supreme Court and consider small businesses’ and their employees needs and concerns when considering changes to the Earned Sick Time Act (ESTA) and Minimum Wage legislation.

“It is crucial that legislators take action this lame duck session and make meaningful changes to the Earned Sick Time Act and Minimum Wage legislation,” said Amanda Fisher, NFIB Michigan State Director. “Small business owners are worried about the uncertainty surrounding the legislation going into effect early next year and the short timeline legislators have to make changes. The time for listening is over – it is time to act.”

In addition to being a regulatory and litigation nightmare for small business owners, because of the way the ESTA is written, many employees may end up losing paid time off (PTO), which can be used for anything, not just illness. “We implore the legislature to act now to make common sense changes to both the ESTA and minimum wage laws, which will preserve paid sick leave, but also give the flexibility that small business owners need in order to meet the needs of their employees.”

NFIB is requesting the following changes:

• Exempt employers with paid leave policies that meet or exceed the number of hours required under the act, including all forms of paid leave.
• Add a small employer exemption of 50 or less employees and only apply full- and part-time employees averaging 20 or more hours per week; exempt seasonal, temporary workers, independent contractors, and subcontractors.
• Tighten up notification requirements to require employee notification before a shift unless the employee is incapacitated.
• Allow for front loading of time off rather than accrual.
• Remove the private right of action to prevent frivolous lawsuits and only allow the state to enforce penalties.
• Reinstatement of the tip-credit for restaurant servers.