The Michigan Earned Sick Time Law Simplified

Michigan's Earned Sick Time Act (ESTA) took effect on February 21, 2025. It replaced the Paid Medical Leave Act (PMLA), which the state legislature passed on Sept. 5, 2018, and it requires nearly every Michigan employer to give employees paid sick time.

Under ESTA, employees earn one hour of paid sick time for every 30 hours worked. Employers with 11 or more employees can cap yearly use at 72 hours, and small businesses with 10 or fewer employees can cap it at 40 hours.

What does this mean for your business? Here we will explain what the law is, how it affects your business, and what you need to do to stay legal.

Small businesses with 10 or fewer employees had until October 1, 2025, to comply. All other employers had to comply on February 21, 2025.

Please note that laws are consistently changing, so please reference the Michigan Department of Labor and Economic Opportunity (LEO) for updates.

Employers Must Give Sick Time Off

Under ESTA, employers must give all employees (full or part time) a minimum of one hour of paid sick time for every 30 hours worked. Accruing hours could also be viewed as earning hours, so if an employee worked 1,000 hours in one year, you would divide the 1,000 hours by 30 (1,000 / 30 = 33.33), which equals 33.33 hours of sick time.

Instead of tracking accrual, an employer can also frontload the hours. That means giving full-time employees at least 72 hours (40 hours for a small business) at the start of each year for immediate use.

Who Is Not Entitled to Paid Sick Leave?

ESTA covers almost every worker in Michigan, but a few groups are not considered employees under the act:

• Employees of the U.S. government
• Unpaid trainees and interns
• Workers employed under Michigan's Youth Employment Standards Act
• Workers who set their own hours and can't face adverse action for not working a minimum schedule
• Most publicly elected or appointed officials

Railroad workers covered by the federal Railroad Unemployment Insurance Act are also excluded. You can view the full details in the LEO Earned Sick Time Act FAQ.

Max Sick Accrued Depends on the Size of Your Company

Per the act, a small business is an employer with 10 or fewer employees. That count includes full-time, part-time, and temporary workers, including those supplied by a staffing agency. If a company has 11 or more employees for 20 or more workweeks in the current or prior calendar year, it does not fall under the "small business" clause, and employees will be due more paid sick time.

10 Employees or Fewer

Employees of a small business accrue the same one hour for every 30 hours worked, but the employer can cap paid sick time at 40 hours per year. Small businesses had to start accrual on October 1, 2025.

11 Employees or More

Michigan businesses with 11 or more employees can cap paid sick time at 72 hours per year. All 72 hours must be paid at the employee's normal hourly wage or the minimum wage, whichever is greater.

An employer may choose to increase the maximum amount an employee may accrue, if they so choose, but the amount cannot be lowered.

Approved Uses of Sick Time

Under ESTA, there are definitions of what is considered "sick time." Here are the approved uses of earned sick time:

• The employee or a family member needs care for a mental or physical illness, injury, or health condition, including diagnosis, treatment, and preventive care.
• The employee or a family member needs medical care, counseling, relocation, victim services, or legal help related to domestic violence or sexual assault.
• The employee needs to attend a meeting at a child's school or place of care about the child's health or disability, or the effects of domestic violence or sexual assault.
• A public official closes the employee's workplace, or the child's school or place of care, because of a public health emergency.
• A health authority or provider decides the employee's or a family member's presence would put others at risk of a communicable disease.

Accrued Sick Time Carries Over From One Year to the Next

According to the Michigan Department of Labor and Economic Opportunity (LEO), unused earned sick time (up to 72 hours, or 40 hours for a small business) carries over to the next year. Employers can still limit how many hours an employee uses in a single year to 72 hours, or 40 hours for a small business.

For example, if your employee accrues 35 hours of sick time but only uses 10 hours on sick days, there is a remaining balance of 25 sick hours. Those 25 hours carry over into the next year, and the employee will effectively start the year with a positive bank of 25 sick hours.

Keep in mind that employers who frontload the full 72 hours (or 40 for a small business) at the start of each year don't have to allow carryover. An employer that uses accrual can also make employees hired on or after February 21, 2025, wait up to 120 days before they use their sick time. Employees still earn hours during that waiting period.

Additionally, you, the employer, can choose how to calculate a "year" under the act. A year is defined as any consecutive 12-month period, for instance, from January 1, 2026, to December 31, 2026.

Accrued Sick Time Must Be Recorded

ESTA requires that all Michigan employers retain a minimum of three years of records documenting employees' hours worked and sick time taken. These records must be available to the state Wage and Hour Division when it asks for them.

How You Can Comply

The first thing that needs to be done is to set up proper employee time tracking and sick time accruals. You can do this manually using pen and paper or even Excel. While these manual systems will work, it is generally easier to use online software, such as OnTheClock, which tracks hours worked, sick time balances, and accruals in one place.

The second item is to set up a sick time policy that covers the Michigan Earned Sick Time Act. Keep in mind your company size, as businesses with 10 or fewer employees must provide up to 40 hours of paid sick time a year, and businesses with 11 or more employees must provide up to 72 hours.

The third item is to give employees written notice and display the poster. Employers must give each employee a written notice at hire that covers how much sick time they earn, how the employer defines a "year," the terms for using it, the ban on retaliation, and the right to file a complaint. Employers must also display the Earned Sick Time Act poster.

Employers that fail to provide earned sick time face a $1,000 administrative fine, plus a possible civil fine of up to eight times the employee's normal hourly wage.

For additional information on how to track PTO or if you would like to understand more about proper paid time off, visit our Employee PTO Section.

Frequently Asked Questions

What Is the New Sick Time Law in Michigan?

Michigan's new sick time law is the Earned Sick Time Act (ESTA), which took effect on February 21, 2025. It requires employers to give employees one hour of paid sick time for every 30 hours worked. Small businesses with 10 or fewer employees had until October 1, 2025, to comply.

How Many Sick Days Are You Allowed in Michigan?

Employees earn one hour of paid sick time for every 30 hours worked. Employers with 11 or more employees can limit yearly use to 72 hours, or nine eight-hour days. Small businesses with 10 or fewer employees can limit it to 40 hours, or five eight-hour days. Employers can always offer more.

Does Michigan Pay Out PTO When You Quit?

ESTA does not require employers to pay out unused earned sick time when an employee leaves. A written company policy or contract can still require a payout under Michigan's wage payment law. If an employee is rehired within two months, they keep their unused sick hours unless those hours were paid out.

Can a PTO Policy Count as Michigan Sick Time?

Yes. A paid time off (PTO) policy satisfies ESTA if it gives at least the same amount of paid time, accrues at least as fast, and lets employees use it for the same purposes and under the same conditions. Employees who use a combined PTO bank for vacation aren't owed extra sick time.

This article is for general information only and isn't legal advice. For questions about your business, contact an employment attorney or the LEO Wage and Hour Division.