Advocacy News – Feb. 25, 2025
After seven months of hard-fought advocacy work by the Michigan Chamber, the Michigan Legislature passed — and Governor Whitmer signed — critical reforms to the Earned Sick Time Act (ESTA) and minimum wage laws. The eleventh-hour reforms were put in place the same day the Supreme Court’s decision to mandate these new changes were slated to take effect (Feb. 21, 2025).
Why it matters: Although the legislative changes in Public Acts 1 and 2 of 2025 impact businesses of all sizes and types (i.e., there are few outright exemptions), the legislative changes ensure that the laws are more workable and manageable. Remember: The Legislature could not find an agreement on an extended compliance window, so the minimum wage and the ESTA obligations took effect Friday, Feb. 21.
- Only small businesses – defined as those with less than 10 employees – have until Oct. 1, 2025 to comply with ESTA.
- The 38% tipped minimum wage stays in place for the remainder of 2025, but the minimum wage increased to $12.48 per hour last Friday.
- All employers have until March 22, 2025, to provide notice to employees regarding the amount of earned sick time(EST) employees are to be provided, the employer’s choice on how they’ll calculate their “year” and the terms EST may be used, that retaliatory personnel action for requesting/using time is prohibited, and that employees have a right to file a complaint with the state.
What’s next: The MI Chamber continues to be on the job for you and committed to helping you understand your compliance obligations.
- Compliance Toolkit – View the MI Chamber’s Minimum Wage and ESTA Toolkit for an overview of the top-line things you need to know, including an updated FAQ, comprehensive overview of the various compliance obligations, legal resources, and more.
- Additional resources will be loaded in the coming days, so be sure to check back!
- Webinar – Join our “Michigan’s NEW Earned Sick Time and Minimum Wage Laws Explained: What Employers Need to Do and Know Now” webinar this Thursday, Feb. 26 with legal experts from the Varnum to learn more about your compliance obligations. Register HERE.
Learn more: The MI Chamber is here to help you navigate these new laws. For further assistance, contact Wendy Block at wblock@michamber.com.