Advocacy News – Feb. 5, 2025
The Senate Regulatory Affairs Committee began hearing testimony Wednesday on changes to the Earned Sick Time Act, which is slated to go into effect Feb. 21. The Michigan Chamber attended today’s hearing but we, like many other representatives from the business community, were not called to testify. Instead, the hearing largely featured testimony from the bill sponsor, state and groups opposed to changes, who falsely argued the proposed legislation would “leave workers vulnerable for exploitation.”
Why it matters: The Michigan House passed bipartisan, commonsense changes to ESTA (House Bills 4002) Jan. 23. The fate of these issues now rests in the Senate’s hands. Without action and changes to the laws as written, the decisions ahead for organizations are difficult, which is why it’s critical lawmakers step in to soften the impact.
What will the Senate do and when: The Senate plans to have another committee hearing Tuesday, Feb. 11 where they will consider changes to ESTA and the minimum wage law. It remains unclear when the committee may take a vote and, on ESTA, whether the vote will be on the Senate version (SB 15) or an amended version of House Bill 4002.
- There seems to be a general feeling in the Senate that the House changes went too far but an acknowledgement that their version (SB 15) needs more work and fails to address key administrative challenges.
- We believe there is room for a deal between the House and Senate on key provisions, including advanced notice, allowing more flexibility for employers wishing to keep one paid time off (PTO), carryover caps, front loading, eliminating the rebuttable presumption and private right of action, and more.
- Exemptions for small businesses and certain classifications of workers (part-time, seasonal, etc.) continue to be a sticking point in the Senate and — while we haven’t given up — ultimately may not be embraced.
- It remains possible, but not guaranteed, that lawmakers could push the effective date of these laws out beyond Feb. 21. Michigan employers should continue to prepare for these laws to take effect as written Feb. 21 but continue to monitor whether statutory changes are agreed upon and enacted.
Overall, negotiations are ongoing. The Chamber is involved in these discussions and negotiations and will continue to push for swift action.
Final push needed (make your voice heard!): It remains critical that business leaders continue to urge Senators to move with urgency. Call or email your State Senator today to ask for their support.
Go deeper:
- Read the coalition leave-behind that the MI Chamber coordinated.
- View a full run-down of activities and compliance resources.
- See our grid that compares the House and Senate bills.
Contact Wendy Block with questions or to get involved.