Why this matters: Michigan sick time laws remain a top compliance issue for employers and continue to generate questions in 2026. The Michigan Earned Sick Time Act (ESTA), effective Feb. 21, 2025, expanded paid sick leave access and established ongoing compliance obligations for employers.
Now that employers are operating fully under ESTA – and with enforcement active – this is a critical time to confirm policies, postings and procedures align with current requirements and avoid potential compliance gaps.
Use this checklist to help. It outlines what Michigan employers should review in 2026 and highlights MI Chamber-verified resources designed to simplify compliance.
What employers should review in 2026:
- Confirm policies and employee handbooks are ESTA-compliant.Employers should review existing paid time off (PTO) and sick leave policies to ensure they meet – or exceed – ESTA requirements. Outdated language or informal workarounds can create compliance risk in 2026.Key areas to confirm include:
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- Accrual vs. frontloading methodology
- Carryover rules
- Permitted uses of earned sick time
- Alignment between written policies and actual practices
- Reinforce manager and HR training.
Even when policies are compliant, risk can arise from inconsistent application. Refresher training helps ensure compliance is applied consistently across departments and locations.
Managers and HR teams should understand:
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- Employee rights under the Michigan Earned Sick Time Act
- Accrual rates and frontloading rules
- Notice, documentation and retaliation protections
- Proper calculation of an employee’s rate of pay
- Ensure required notices are posted and communicated.
Michigan employers must continue to notify employees of their earned sick time rights.
Beyond being required legally, labor law posters remain one of the most effective compliance tools because they:
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- Provide required notices in a standardized format
- Reduce confusion and miscommunication
- Demonstrate good-faith compliance during enforcement reviews
The Michigan Chamber offers printed and digital labor law posters reflecting ESTA and all 2025–2026 updates, including options for multi-location, hybrid and remote workplaces.
- Validate time tracking and payroll systems.
Employers should confirm payroll and time-tracking systems accurately reflect their ESTA compliance approach – whether accrual or frontloading. System errors – especially when left uncorrected – can compound compliance exposure over time.
Important checks include:
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- Accurate accrual calculations or frontloading implementation
- Alignment between payroll systems and written policies
MI Chamber resources and support are here for you and your business. To help employers navigate Michigan sick time laws with confidence, the MI Chamber offers a Comprehensive ESTA and Minimum Wage Toolkit, including:
- A detailed compliance checklist
- Updated FAQs
- One-page summary: Top Things Employers Need to Know
- Sample employee handbook language
- Sample notification letters
The toolkit is free for MI Chamber members and MiBiz360 Bundle purchasers or available for $149 for non-members.
Additionally, the Michigan Chamber Labor Law Poster Subscription provides:
- A compliant, high-quality poster
- Automatic updates for 12 months from purchase date
- Digital posters options for hybrid or remote workers
- Personalized customer service
- Contact Terese McInnis via email or at 517-371-7657 with questions or to coordinate orders with multiple delivery locations.
Final 2026 compliance reminders for employers. Michigan sick time laws are not optional and enforcement is active. Employers should treat ESTA compliance as a standing operational requirement – not a one-time update.
Action steps for 2026:
- Review sick leave and PTO policies for alignment with ESTA
- Confirm manager training and internal guidance
- Verify required postings are current and visible
- Use Chamber resources to reduce compliance risk
The MI Chamber is here to support employers with practical, time-saving tools, guidance and expert insight to navigate ESTA requirements with confidence.
For questions or additional support, contact Wendy Block, senior vice president of business advocacy, via email or at 517-371-7678.