Detroit City Wire

On August 22, Dykema hosted a webinar to explore the upcoming changes in Paid Leave and Minimum Wage regulations, providing solutions for employers to prepare for mandatory adjustments by February 2025.

One significant challenge for employers is the broad applicability of the new statute. Unlike the previous Paid Medical Leave Act, the Earned Sick Time Act (ESTA) mandates that all employees, regardless of status, are entitled to earn sick time.

Due to the complex nature of these new rules, many business organizations, including the Detroit Regional Chamber, plan to advocate for amendments. In preparation for February's changes, Dykema advises business owners to start "getting their ducks in a row now." This may include:

- Addressing employees who currently receive no leave time by incorporating this into existing policies and creating specific policies for part-time and temporary employees.

- Assessing if your company meets the minimum thresholds of accrual.

- Utilizing legal counsel or HR professionals can offer invaluable guidance in navigating ESTA's nuances. Expert advice can help determine worker classifications, address industry-specific challenges, and develop tailored compliance strategies.

The Detroit Regional Chamber is committed to supporting its members on this issue by collaborating with several law firms within its membership to address pressing questions. Members are encouraged to submit their questions about the ruling.

Additionally, on August 28 from 9-10 a.m., a virtual Michigan Business Town Hall will be hosted by the Michigan, Detroit, and Grand Rapids Chambers of Commerce. The event will discuss how employers can advocate for changes to this decision. Registration is open now.

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