Bill Text: MI HB4002 | 2025-2026 | 103rd Legislature | Engrossed
Bill Title: Labor: benefits; requirements for an employer to provide earned sick time, modify. Amends secs. 2, 3, 4, 5, 6, 7, 8, 10, 11 & 12 of 2018 PA 338 (MCL 408.962 et seq.).
Spectrum: Partisan Bill (Republican 40-0)
Status: (Engrossed) 2025-01-23 - Transmitted [HB4002 Detail]
Download: Michigan-2025-HB4002-Engrossed.html
substitute for
House BILL NO. 4002
A bill to amend 2018 PA 338, entitled
"Earned sick time act,"
by amending sections 2, 3, 4, 5, 6, 7, 8, 10, 11, and 12 (MCL 408.962, 408.963, 408.964, 408.965, 408.966, 408.967, 408.968, 408.970, 408.971, and 408.972).
the peoplE of the state of michigan enact:
(a) "Benefit year" means any consecutive 12-month period used by an employer to calculate an eligible employee's benefits.
(b) (a) "Department" means the department of licensing labor and regulatory affairs.economic opportunity.
(c) (b) "Director" means the director of the department of licensing and regulatory affairs or his or her the director's designee.
(d) (c) "Domestic partner" means an adult in a committed relationship with another adult, including both same-sex and different-sex relationships. "Committed relationship" As used in this subdivision, "committed relationship" means one a relationship in which the eligible employee and another individual share responsibility for a significant measure of each other's common welfare, such as any relationship between individuals of the same or different sex that is granted legal recognition by a state, political subdivision, or the District of Columbia as a marriage or analogous relationship, including, but not limited to, a civil union.
(e) (d) "Domestic violence" has the same meaning means that term as provided defined in section 1 of 1978 PA 389, MCL 400.1501.
(f) (e) "Earned sick time" means time off from work that is provided by an employer to an employee, whether paid or unpaid, that can be used for the purposes described in subsection (1) of section 4 of this act.section 4(1).
(g) (f) "Employee" "Eligible employee" means an individual engaged in service to an employer in the business of the employer, except that for whom an employer is required to withhold pay for federal income tax purposes. Eligible employee does not include an individual employed by the United States government.any of the following:
(i) An individual employed by the United States government, another state, or a political subdivision of another state.
(ii) An individual whose primary work location is not in this state.
(iii) An individual employed by an employer for 25 weeks or less in a benefit year for a job scheduled for 25 weeks or less in a benefit year.
(iv) An individual who worked, on average, less than 25 hours per week during the immediately preceding benefit year or is expected to work, on average, less than 25 hours per week in the current benefit year.
(v) A variable hour employee as defined in 26 CFR 54.4980H-1.
(vi) An individual employed by an air carrier as a flight deck or cabin crew member who is subject to subchapter II of the railway labor act, 45 USC 181 to 188.
(vii) An employee as described in section 201 of the railway labor act, 45 USC 181.
(viii) An employee as defined in section 1 of the railroad unemployment insurance act, 45 USC 351.
(h) (g) "Employer" means any person, firm, business, educational institution, nonprofit agency, corporation, limited liability company, government entity, or other entity that employs 1 50 or more individuals. , except that employer does not include the United States government.Employer does not include the United States government, another state, or a political subdivision of another state.
(i) (h) "Family member" includes all of the following:
(i) (i) A biological, adopted or foster child, stepchild or legal ward of the eligible employee, a child of a domestic partner, or a child to whom the eligible employee stands in loco parentis.
(ii) (ii) A biological parent, foster parent, stepparent, or adoptive parent or a legal guardian of an eligible employee or an eligible employee's spouse or domestic partner or a person an individual who stood in loco parentis when the eligible employee was a minor child.
(iii) (iii) A person An individual to whom the eligible employee is legally married under the laws of any state or a domestic partner.
(iv) (iv) A grandparent of the eligible employee.
(v) (v) A grandchild of the eligible employee.
(vi) (vi) A biological, foster, or adopted sibling of the eligible employee.
(vii) (vii) Any other An individual related by blood or affinity to the eligible employee.
(viii) An individual whose close association relationship with the eligible employee is the equivalent of a family relationship.
(j) (i) "Health care professional" provider" means any of the following:
(i) Any person licensed under federal law or the law of this state to provide health care services, including, but not limited to, nurses, doctors, and emergency room personnel.
(ii) A certified midwife.that term as defined in section 101 of the family and medical leave act, 29 USC 2611, and includes a chiropractor as that term is defined in section 16401 of the public health code, 1978 PA 368, MCL 333.16401.
(k) (j) "Retaliatory personnel action" means any of the following:
(i) (i) Denial of any right guaranteed under this act.
(ii) (ii) A threat, discharge, Discharge, suspension, demotion, reduction of hours, or other adverse employment action against an eligible employee or former employee for exercise of a right guaranteed under this act.
(iii) Sanctions against an employee who is a recipient of public benefits for exercise of a right guaranteed under this act.
(iii) (iv) Interference with, or punishment for, an individual's eligible employee's participation in any manner in an a department investigation, proceeding, or hearing under this act.
(l) "Paid leave" includes, but is not limited to, paid vacation days, paid personal days, paid sick leave, or paid time off.
(m) (k) "Sexual assault" means any act that constitutes a violation of violates section 520b, 520c, 520d, 520e, 520f, or 520g of the Michigan penal code, 1931 PA 328, MCL 750.520b, 750.520c, 750.520d, 750.520e, 750.520f, and 750.520g.
(l) "Small business" means an employer for which fewer than 10 individuals work for compensation during a given week. In determining the number of individuals performing work for compensation during a given week, all individuals performing work for compensation on a full-time, part-time, or temporary basis shall be counted, including individuals made available to work through the services of a temporary services or staffing agency or similar entity. An employer is not a small business if it maintained 10 or more employees on its payroll during any 20 or more calendar workweeks in either the current or the preceding calendar year.
Sec. 3. (1) Each An employer shall provide earned sick time to each of the employer's eligible employees in this state.
(a) Employees of a small business shall accrue a minimum of one hour of earned sick time for every 30 hours worked but shall not be entitled to use more than 40 hours of paid earned sick time in a year unless the employer selects a higher limit. If an employee of a small business accrues more than 40 hours of earned sick time in a calendar year, the employee shall be entitled to use an additional 32 hours of unpaid earned sick time in that year, unless the employer selects a higher limit. Employees of a small business must be entitled to use paid earned sick time before using unpaid earned sick time.
(2) (b) All other employees shall accrue Except as otherwise provided in subsection (3), an eligible employee must accrue a minimum of one 1 hour of paid earned sick time for every 30 hours worked, but shall not including hours used as paid leave. An employer may limit an eligible employee's accrual of paid earned sick time to not be entitled to use more less than 72 hours of paid earned sick time per benefit year. , unless An employer shall allow an eligible employee to carry over unused accrued paid earned sick time from 1 benefit year to another benefit year, unless the employer pays the eligible employee the value of the eligible employee's unused accrued paid earned sick time at the end of the benefit year. Unless the employer selects a higher limit, an employer is not required to allow an eligible employee to do either of the following:
(a) Use more than 72 hours of paid earned sick time in a benefit year.
(b) Carry over more than 72 hours of paid earned sick time from 1 benefit year to another benefit year.
(c) Earned sick time shall carry over from year to year, but a small business is not required to permit an employee to use more than 40 hours of paid earned sick time and 32 hours of unpaid earned sick time in a single year, and other employers are not required to permit an employee to use more than 72 hours of paid earned sick time in a single year.
(3) As an alternative to subsection (2), an employer may provide not less than 72 hours of paid earned sick time to an eligible employee at the beginning of a benefit year. For an eligible employee hired after the beginning of a benefit year, an employer may prorate paid earned sick time provided under this subsection. If an employer provides paid earned sick time under this subsection, the employer is not required to do either of the following:
(a) Calculate and track the eligible employee's accrual of paid earned sick time.
(b) Allow the eligible employee to carry over any of the paid earned sick time provided under this subsection to another benefit year.
(4) (2) Earned sick time as provided in this section shall begin subsection (2) begins to accrue on the effective date of this law, act, or upon on commencement of the eligible employee's employment, whichever is later. An eligible employee may use accrued earned sick time as it is accrued and accounted in the eligible employee's employer's payroll system, except that an employer may require an eligible employee hired after April 1, 2019, February 21, 2025 to wait until the ninetieth calendar day after commencing employment before using accrued earned sick time. If a benefit year began before the effective date of the amendatory act that added this sentence and has not ended, earned sick time provided to an eligible employee under subsection (2) or (3) before the effective date of the amendatory act that added this sentence may be counted toward an employer's compliance obligations under this act.
(3) For purposes of subsection (1), "year" shall mean a regular and consecutive twelve-month period, as determined by an employer.
(5) (4) For purposes of earned sick time accrual under this act, subsection (2), an eligible employee who is exempt from overtime requirements under section 13(a)(1) of the Fair Labor Standards Act, fair labor standards act, 29 USC 213(a)(1), 213, is assumed to work 40 hours in each workweek unless the eligible employee's normal work week workweek is less than 40 hours, in which case earned sick time accrues based upon on that normal workweek.
(6) (5) An employer other than a small business is in compliance with this section if the employer provides any paid leave in at least not less than the same amounts as that provided under this act that may be used for the same purposes and under the same conditions provided in this act and that is accrued at a rate equal to or greater than the rate described in subsections (1) and subsection (2). An employer that is a small business is in compliance with this section if the employer provides paid leave in at least the same amounts as that provided under this act that may be used for the same purposes and under the same conditions provided in this act and that is accrued at a rate equal to or greater than the rate described in subsections (1) and (2) provided further that that employees of the small business are entitled to use paid earned sick time before using unpaid earned sick time. For purposes of this subsection, "paid leave" includes but is not limited to paid vacation days, personal days, and paid time off.
(7) (6) An employer shall pay each eligible employee using paid earned sick time at a pay rate equal to the greater of either the normal hourly wage or base wage for that eligible employee. or the minimum wage established under the workforce opportunity wage act, 2014 PA 138, MCL 408.411 to 408.424, but not less than the minimum wage rate established in section 4 of the workforce opportunity wage act, 2014 PA 138, MCL 408.414. For any employee whose hourly wage varies depending on the work performed, the "normal hourly wage" means the average hourly wage of the employee in the pay period immediately prior to the pay period in which the employee used paid earned sick time.An employer is not required to include overtime pay, holiday pay, bonuses, commissions, supplemental pay, piece-rate pay, tips, or gratuities in the calculation of an eligible employee's normal hourly wage or base wage.
(8) (7) An employer shall not require an eligible employee to search for or secure a replacement worker as a condition for using earned sick time.
Sec. 4. (1) An employer shall permit allow an eligible employee to use the earned sick time accrued or provided under section 3 for any of the following:
(a) The eligible employee's mental or physical illness, injury, or health condition, ; a medical diagnosis, care, or treatment of the eligible employee's mental or physical illness, injury, or health condition, ; or preventative medical care for the eligible employee.
(b) For the The eligible employee's family member's mental or physical illness, injury, or health condition, ; a medical diagnosis, care, or treatment of the eligible employee's family member's mental or physical illness, injury, or health condition, ; or preventative medical care for a family member of the eligible employee.
(c) If the eligible employee or the eligible employee's family member is a victim of domestic violence or sexual assault, for the medical care or psychological or other counseling for physical or psychological injury or disability, ; to obtain services from a victim services organization, ; to relocate due to domestic violence or sexual assault, ; to obtain legal services, ; or to participate in any civil or criminal proceedings related to or resulting from the domestic violence or sexual assault.
(d) For meetings at a child's school or place of care related to the child's health or disability, or the effects of domestic violence or sexual assault on the child, if the child is a family member. ; or
(e) For closure of the eligible employee's place of business by order of a public official due to a public health emergency, ; for an eligible employee's need to care for a child who is a family member whose school or place of care has been closed by order of a public official due to a public health emergency, ; or when if it has been determined by the health authorities having jurisdiction or by a health care provider that the eligible employee's or eligible employee's family member's presence in the community would jeopardize the health of others because of the eligible employee's or eligible employee's family member's exposure to a communicable disease, whether or not the eligible employee or eligible employee's family member has actually contracted the communicable disease.
(2) If the employee's need to use earned sick time is foreseeable, an employer may require advance notice, not to exceed 7 days prior to the date the earned sick time is to begin, of the intention to use the earned sick time. If the employee's need for the earned sick time is not foreseeable, an employer may require the employee to give notice of the intention as soon as practicable.An eligible employee shall, when requesting to use earned sick time, comply with the eligible employee's employer's usual and customary notice, procedure, and documentation requirements for requesting or using sick time or leave to the extent the policy is provided in writing in the employer's employee handbook or other employee benefits document. An employer may take disciplinary personnel action against an eligible employee if either of the following conditions is met:
(a) The eligible employee fails to comply with the employer's usual and customary notice, procedure, and documentation requirements for requesting or using sick time or leave.
(b) The eligible employee is absent from work for a period of 3 or more consecutive workdays without contacting the employer in a manner that is acceptable to the employer.
(3) Earned sick time may must be used in the smaller of hourly 1-hour increments or the smallest increment that unless the employer's payroll system uses to account for absences of use of other time.employer has a different increment policy that is provided in writing in the employer's employee handbook or other employee benefits document.
(4) If earned sick time also qualifies as leave under any of the following laws, an employer may require the earned sick time be taken concurrently with the leave taken under the applicable law:
(a) The family and medical leave act of 1993, 29 USC 2601 to 2654.
(b) Title I of the Americans with disabilities act of 1990, 42 USC 12111 to 12117.
(c) Any other applicable federal or state law.
(5) (4) For earned sick time of more than 3 consecutive days, an employer may require reasonable documentation or a certification that meets the requirements under section 2613 of the family and medical leave act, 29 USC 2613, that supports that the earned sick time has been used for a purpose described in subsection (1). Upon the employer's request, the eligible employee must provide the documentation to the employer in a timely manner. not more than 15 days after the employer's request. The employer shall not delay the commencement of earned sick time on the basis that the employer has not yet received documentation. Documentation signed by a health care professional indicating provider that indicates that earned sick time is necessary is reasonable documentation for purposes of this subsection. In cases of domestic violence or sexual assault, one 1 of the following types of documentation selected by the eligible employee shall be is considered reasonable documentation:
(a) a A police report indicating that indicates that the eligible employee or the eligible employee's family member was a victim of domestic violence or sexual assault. ;
(b) a A signed statement from a victim and witness advocate affirming that affirms that the eligible employee or eligible employee's family member is receiving services from a victim services organization. ; or
(c) a A court document indicating that indicates that the eligible employee or eligible employee's family member is involved in legal action related to domestic violence or sexual assault.
(6) An Unless an eligible employee's use of earned sick time runs concurrently with leave covered under the family and medical leave act, 29 USC 2601 to 2654, and the employer requires a certification in accordance with section 2613 of the family and medical leave act, 29 USC 2613, an employer shall not require that the documentation explain the nature of the illness or the details of the violence. If an employer chooses to require documentation for earned sick time, the employer is responsible for paying all out-of-pocket expenses the employee incurs in the cost of obtaining the documentation. If the employee does have health insurance, the employer is responsible for paying any costs charged to the employee by the health care provider for providing the specific documentation required by the employer.
(7) (5) An employer shall not require disclosure of details relating to domestic violence or sexual assault or the details of an eligible employee's or an eligible employee's family member's medical condition as a condition of providing earned sick time under this act. If an employer possesses health information or information pertaining to domestic violence or sexual assault about an eligible employee or eligible employee's family member, the employer shall treat that information as confidential and shall not disclose that information except to the affected eligible employee or with the permission of the affected eligible employee or as otherwise required by law.
(8) (6) This act does not require an employer to provide earned sick time for any purposes other than as described in this section.
Sec. 5. (1) If an eligible employee is transferred to a separate division, entity, or location, but remains employed by the same employer, the eligible employee shall retain retains all earned sick time that was accrued at the prior division, entity, or location and may use all the accrued earned sick time as provided in section 4. If an eligible employee separates from employment and is rehired by the same employer within not more than 6 months of after the separation, the employer shall reinstate previously accrued, unused earned sick time and shall permit allow the reinstated eligible employee to use that earned sick time and accrue additional earned sick time upon on reinstatement. This subsection does not apply if an employer pays an eligible employee the value of the eligible employee's unused accrued earned sick time at the time of a transfer or separation.
(2) If a different employer succeeds or takes the place of an existing employer, the successor employer assumes the responsibility for the earned sick time rights that eligible employees who remain employed by the successor employer accrued under the original employer. Those eligible employees are entitled to use earned sick time previously accrued on the terms provided in this act. This subsection does not apply if an employer pays an eligible employee the value of the eligible employee's unused accrued earned sick time at the time of a succession.
(3) This act does not require an employer to provide financial or other reimbursement to an eligible employee for accrued earned sick time that was not used upon the eligible employee's termination, resignation, retirement, or other separation from employment.
Sec. 6. (1) An employer or any other person shall not interfere with, restrain, or deny the exercise of, or the attempt to exercise, any right protected under this act.
(2) An employer shall not take retaliatory personnel action or discriminate against an employee because the employee has exercised a right protected under this act. Rights protected by under this act include, but are not limited to, the right to use do any of the following:
(a) Use earned sick time pursuant to in accordance with this act. , the right to file
(b) File a complaint with the department or inform any person about any employer's alleged violation of this act. , the right to cooperate
(c) Cooperate with the department in its investigations of alleged violations of this act. , and the right to inform
(d) Inform any person of his or her the person's rights under this act.
(3) An employer's absence control policy shall not treat earned sick time taken under this act as an absence that may lead to or result in retaliatory personnel action.
(4) The protections in this section apply to any person who mistakenly but in good faith alleges a violation of this section.
(5) There is a rebuttable presumption of a violation of this section if an employer takes adverse personnel action against a person within 90 days after that person does any of the following:
(a) Files a complaint with the department or a court alleging a violation of this act.
(b) Informs any person about an employer's alleged violation of this act.
(c) Cooperates with the department or another person in the investigation or prosecution of any alleged violation of this act.
(d) Opposes any policy, practice, or act that is prohibited under this act.
(e) Informs any person of his or her rights under this act.
Sec. 7. (1) If an employer violates this act, the eligible employee affected by the violation, at any time within not more than 3 years after the violation, or the date when the employee knew of the violation, whichever is later, may do any of the following:
(a) Bring a civil action for appropriate relief, including, but not limited to, payment for used earned sick time; rehiring or reinstatement to the employee's previous job; payment of back wages; reestablishment of employee benefits to which the employee otherwise would have been eligible if the employee had not been subjected to retaliatory personnel action or discrimination; and an equal additional amount as liquidated damages together with costs and reasonable attorney fees as the court allows.
(b) File file a claim complaint with the department. , which The department shall investigate the claim. Filing a claim with the department is neither a prerequisite nor a bar to bringing a civil action.complaint.
(2) (a) The director shall enforce the provisions of this act. In effectuating such the enforcement, the director shall establish do both of the following:
(a) Establish a system utilizing that uses multiple means of communication to receive complaints regarding non-compliance that are related to noncompliance with this act. and investigate
(b) Investigate complaints received by the department in a timely manner.
(3) (b) Any person alleging a violation of this chapter shall have the right to file a complaint with the department. The department shall encourage reporting pursuant to under this subsection section by keeping confidential, to the maximum extent permitted by applicable laws, the name and other identifying information of the eligible employee or person reporting the violation. , provided, however, that with the authorization of such person, However, the department may disclose his or her the eligible employee's name and identifying information as necessary to enforce this chapter act or for other appropriate purposes.
(4) (c) Upon receiving a complaint alleging that alleges a violation of this chapter, act, the department shall investigate such the complaint and attempt to resolve it through mediation between the complainant and the subject of the complaint, or other means. The department shall keep complainants the complainant notified regarding the status of their the complainant's complaint and any resultant investigation. If the department believes that a violation has occurred, it shall issue to the offending person or entity a notice of violation and the relief required of the offending person or entity. The department shall prescribe the form and wording of such the notices of violation including any method of appealing to appeal the decision of the department.
(5) (d) The department shall have the power to may impose penalties and to grant an eligible employee or former eligible employee all appropriate relief, including but not limited to which may include payment of all earned sick time improperly withheld, any and all direct damages incurred by the complaint complainant as the result of violation of this act, and back pay and reinstatement in the case of job loss.
(6) (3) If the director determines that there is reasonable cause to believe that an employer violated this act and the department is subsequently unable to obtain voluntary compliance by the employer within a reasonable time, the department shall may bring a civil action as provided in subsection (1)(a) on behalf of the eligible employee. The department may investigate and file a civil action under subsection (1)(a) on behalf of all eligible employees of that employer who are similarly situated at the same work site. and who have not brought a civil action under subsection (1)(a). A Except as otherwise provided in section 12, a contract or agreement between the employer and the eligible employee or any acceptance by the eligible employee of a paid or unpaid leave policy that provides fewer rights or benefits than provided by this act is void and unenforceable.
(7) (4) In addition to liability for civil remedies described in this section, an employer who that fails to provide earned sick time in violation of this act or takes retaliatory personnel action against an employee or former employee is subject to a civil fine of not more than $1,000.00.
(8) (5) An employer that willfully violates a notice or posting requirement of section 8 is subject to a civil fine of not more than $100.00 for each separate violation.
Sec. 8. (1) An employer subject to this act shall provide written notice to each eligible employee at the time of hiring or by April 1, 2019, February 21, 2025, whichever is later, including, but not limited to, that includes, at a minimum, all of the following:
(a) The amount of earned sick time required to be provided to an eligible employee under this act.
(b) The employer's choice of how to calculate a "year" according to subsection 3 of section 3.benefit year.
(c) The terms under which earned sick time may be used.
(d) That retaliatory personnel action taken by the employer against an eligible employee for requesting or using earned sick time for which the eligible employee is eligible is prohibited.
(e) The eligible employee's right to bring a civil action or file a complaint with the department for any a violation of this act.
(2) The notice required under subsection (1) shall must be in English , Spanish, and any language that is the first language predominantly spoken by at least 10% of the employer's workforce, as long as if the department has translated the notice into such that language.
(3) An employer shall display a poster at the employer's place of business, in a conspicuous place that is accessible to eligible employees, that contains the information in subsection (1). The poster displayed should must be in English , Spanish, and any language that is the first language predominantly spoken by at least 10% of the employer's workforce, as long as if the department has translated the poster into such that language.
(4) The department shall create and make available to employers notices and posters that contain the information required under subsection (1) for the employers' use in complying with this section. The department shall provide such the notices and posters in English, Spanish, and any other languages deemed considered appropriate by the department.
Sec. 10. An employer shall retain for not less than 3 years records documenting that document the hours worked and earned sick time taken by eligible employees. To monitor compliance with the requirements of this act, an employer shall allow the department access to those records, with appropriate notice and at a mutually agreeable time. If a question arises as to whether an employer has violated an eligible employee's right to earned sick time under this act and the employer does not maintain or retain adequate records documenting that document the hours worked and earned sick time taken by the eligible employee or does not allow the department reasonable access to those records, there is a presumption that the employer has violated the act, which can be rebutted only by clear and convincing evidence.
Sec. 11. (1) This act provides minimum requirements pertaining to earned sick time and shall must not be construed to preempt, limit, or otherwise affect the applicability of any other law, regulation, requirement, policy, or standard, including a collective bargaining agreement, that provides for greater accrual or use of time off, whether paid or unpaid, or that extends other protections to eligible employees.
(2) This act does not do any of the following:
(a) Prohibit an employer from providing more earned sick time or paid leave than is required under this act.
(b) Diminish any rights provided to any eligible employee under a collective bargaining agreement.
(c) Subject to section 12, preempt or override the terms of any collective bargaining agreement in effect prior to before the effective date of this act.
(d) Prohibit an employer from establishing a policy that permits an eligible employee to donate unused accrued earned sick time to another eligible employee.
Sec. 12. If an employer's eligible employees are covered by a collective bargaining agreement in effect on the effective date of this act, this act applies beginning on the stated expiration date in the collective bargaining agreement, notwithstanding any statement in the agreement that it continues in force until a future date or event or the execution of a new collective bargaining agreement.
