Earned Sick Time Act — employer coverage
Michigan's Earned Sick Time Act applies to any employer with one or more employees. "Employer" is defined broadly to include any person, firm, business, educational institution, corporation, limited liability company, government entity, or other entity that employs one or more individuals. The United States government is excluded from the definition of employer.
Source: MCL 408.962(g)
Earned Sick Time Act — accrual rate and annual usage cap
Under Michigan's Earned Sick Time Act, employees accrue a minimum of 1 hour of paid earned sick time for every 30 hours worked. Small businesses (10 or fewer employees) may limit usage to 40 hours per year; all other employers may limit usage to 72 hours per year. Unused hours carry over year to year, up to the same cap (40 or 72 hours). As an alternative to accrual, employers may front-load the full annual amount at the beginning of the year for immediate use, which relieves the employer of carryover tracking obligations.
Source: MCL 408.963
Earned Sick Time Act — permitted uses
Michigan’s Earned Sick Time Act defines “family member” broadly under MCL 408.962(h). It includes:
- A biological, adopted, or foster child; stepchild; legal ward; child of a domestic partner; or child to whom the employee stands in loco parentis.
- A parent (biological, foster, stepparent, adoptive parent, or legal guardian) of the employee or the employee’s spouse or domestic partner, or any person who stood in loco parentis when the employee was a minor.
- An individual to whom the employee is legally married under the laws of any state, or a domestic partner.
- A grandparent.
- A grandchild.
- A sibling (biological, foster, or adopted).
- Any other individual related by blood to the employee.
- Any individual whose close association with the employee is the equivalent of a family relationship.
This final, catch-all clause means ESTA’s “family member” definition covers not just enumerated blood and legal relationships, but also anyone with a close bond to the employee that equates to a family tie. The Michigan statute intentionally uses non-exhaustive language to prevent rigid exclusions based solely on formality.
Source: MCL 408.962(h)
Earned Sick Time Act — effective date and phased compliance by employer size
Michigan’s Earned Sick Time Act (ESTA), originally enacted as 2018 PA 338, was revived and went into effect on February 21, 2025, after the Michigan Supreme Court invalidated 2018 PA 369 and restored the original initiative’s provisions (the state refers to this as the effective date for new compliance obligations).
ESTA's compliance requirements differ by employer size:
- Employers with more than 10 employees (11 or more in 20 or more workweeks in the current or prior calendar year, as defined in MCL 408.962(l)) were required to comply immediately on February 21, 2025.
- Small employers (10 or fewer employees) received a delayed compliance deadline—required to comply as of October 1, 2025.
- The Michigan Department of Labor and Economic Opportunity’s official ESTA FAQ confirms that a small employer that did not employ any person on or before February 21, 2022 is not required to comply with ESTA until three years after it employs its first worker. For example, a small business that hires its first employee in October 2024 would begin compliance no later than October 2027.
Compliance timeline summary:
- Large employers (11+ employees): Feb 21, 2025
- Small employers (≤10 employees): Oct 1, 2025
- Small employers with first hire after Feb 21, 2022: Three years from that initial hire
This staged approach grants extra transition time for small and new employers, while requiring prompt compliance from larger ones.
Source: MCL 408.962 Source: Public Act 338 of 2018 (History, Effective Date) Source: Michigan LEO, Earned Sick Time FAQ
Earned Sick Time Act — waiting period for initial use of accrued hours
Michigan's Earned Sick Time Act establishes a waiting period before employees may use accrued earned sick time. Under MCL 408.963(3), employees may begin using accrued sick time on the 90th calendar day after commencing employment. This applies regardless of whether leave is accrued by the hour worked (accrual method) or provided up-front as a lump sum at the beginning of the benefit year (frontloading). Even if an employer frontloads the entire annual allotment at hiring, an employee still cannot use earned sick time until this 90-day period has expired.
For employees rehired by the same employer within six months of separation, any previously accrued but unused earned sick time is reinstated, and the prior period of employment counts toward the 90-day waiting period. That means if the employee already satisfied the waiting period before separation, no new waiting period applies upon rehire within six months (per MCL 408.963(7)).
After the waiting period, employees may access and use earned sick time as it accrues (or has been frontloaded), up to the annual usage cap according to employer size.
Source: MCL 408.963
Employee exclusions under MCL 408.962(f) — who is not an “employee” and thus not entitled to earned sick time
Michigan’s Earned Sick Time Act (ESTA) defines “employee” in MCL 408.962(f), but carves out several explicit exclusions. Workers who fall into one of the following five categories do not accrue or use earned sick time under ESTA:
1. Federal employees: Individuals employed by the United States government are excluded from the definition of “employee.” (MCL 408.962(f)(i))
2. Workers with self-directed schedules: An individual is excluded if (A) their terms of employment allow them to work or not work as they choose, and (B) the employer does not discipline or fire them for failing to work a minimum number of hours. These two prongs must both be met. (MCL 408.962(f)(ii)(A)-(B))
3. Unpaid trainees or interns: Individuals who are bona fide unpaid trainees or interns—meaning their work relationship meets all statutory requirements for genuine unpaid status—are excluded. (MCL 408.962(f)(iii))
4. Youth employment under specific state law: Persons employed in compliance with the Michigan Youth Employment Standards Act (1978 PA 90, MCL 409.101 to 409.124) are excluded. (MCL 408.962(f)(iv))
5. Railway employees under federal law: Employees and employers subject to the federal Railroad Unemployment Insurance Act (RUIA) are excluded from ESTA coverage; this exclusion is set by state statute because RUIA preempts state sick time requirements for this category. (MCL 408.962(f)(v))
If a worker falls into any of these five categories, they are not entitled to accrue or use earned sick time under the Michigan ESTA. The statute does not expressly address whether these excluded individuals are counted toward employer-size thresholds for ESTA obligations. Unable to confirm as of 2026-06-15.
Source: MCL 408.962(f) Source: Michigan Dept. of Labor and Economic Opportunity – Earned Sick Time FAQ