Detroit City Wire

The Michigan Legislature has amended the Earned Sick Time Act (ESTA) and the tipped minimum wage provisions from the proposed 2018 voter-initiated laws. These amendments, passed by the Senate, mark a significant development for the Detroit Regional Chamber and its members, as well as the broader business community in Michigan.

This legislative action follows months of advocacy by the Chamber's Public Policy and Business Advocacy team. The team engaged with legislators and peer organizations to propose changes that would make compliance more feasible for businesses. They also organized informational sessions and provided resources to help businesses prepare for these changes.

Several key amendments have been made to ESTA. Employers can now front-load sick time for full-time employees, providing at least 40 hours for small businesses and 72 hours for larger businesses. Existing paid time off banks can count towards sick time if they allow similar usage as ESTA. Employees must notify employers when taking a sick day according to a written policy established at hire. Additionally, rebuttable presumption in complaints against employers has been removed, and adverse actions are allowed if sick time is used improperly.

Other technical adjustments were made to ease employer compliance, such as eliminating tracking requirements if sick time is front-loaded and removing a loophole that could have required higher pay rates than an employee's base pay.

Furthermore, the legislature adjusted the minimum wage increase while preserving the tip credit system crucial for restaurants. This change was influenced by ongoing advocacy from industry partners seeking to maintain economic viability in the restaurant sector.

The Chamber commends its members for their efforts in educating policymakers on this issue's importance, emphasizing that collective advocacy benefits all Michigan employers.