Amanda Fisher, Michigan state director of the National Federation of Independent Business, testifies before the Senate Regulatory Affairs Committee on Feb. 11, 2025. | Kyle Davidson
With 10 days remaining until new earned sick time requirements are set to take effect, the Michigan Senate Regulatory Affairs Committee met Tuesday taking further testimony on a proposal to trim back these new provisions out of concern for Michigan businesses.
Despite the Feb. 21 deadline and the limited number of session days where the Senate could act before businesses are subject to additional paid sick leave provisions, the committee opted against voting on the legislation, making the future of the Senate’s slimmed-down sick leave requirements uncertain.
Over the summer the Michigan Supreme Court ordered the restoration of provisions stripped out from two ballot initiatives, finding that the 2018 Legislature — led by Republicans — acted unconstitutionally by adopting and amending the measures.
If lawmakers do not act before Feb. 21, Michigan businesses would require employers with fewer than 10 employees to offer up to 40 hours of paid sick leave and 32 hours of unpaid leave accrued over the year, while businesses with 10 or more employees must offer 72 hours of paid sick leave a year.
Both the Republican-led House and Democratic-led Senate have introduced proposals aiming to trim back these changes.
The House proposal, H.B. 4002, would largely eliminate the provisions restored by the Supreme Court, exempting businesses with fewer than 50 employees from the new sick leave requirements and eliminating language permitting employees to take legal action against their employer should they violate the law.
The Senate proposal offers a narrower definition for small businesses, with S.B. 15, introduced by Sen. Sam Singh (D-East Lansing) classifying a small business as a company with less than 25 employees and requiring businesses provide their employees with 40 hours of paid sick leave and 30 hours of unpaid sick leave at the beginning of the year, instead of the 40 hours of paid leave and 32 hours of unpaid leave accrued through the year. Employers would also be allowed to grant their employees 72 hours of paid sick leave at the beginning of the year, rather than having them accrue it over time.
While the House’s proposal has already cleared the floor, the Senate’s effort remains in committee, with the timeline for a vote unclear.
Regulatory Affairs Committee Chair Sen. Jeremy Moss (D-Southfield) told reporters after the conclusion of the meeting that the committee was working to take as much action as possible this week, given the Feb. 21 deadline and the Legislature’s five-day rule which requires each chamber have possession of a bill for at least five days before it can become a law.
Addressing the impending changes to the earned sick leave law — alongside a phase out of the state’s tipped minimum wage alongside increases to the states minimum wage — has been a top priority for House Republicans, who advanced their proposal to the Senate on Jan. 23 with bipartisan support. However, House Minority Leader Ranjeev Puri (D-Canton) argued the Feb. 21 deadline was not as dire as Republicans made it out to be, as multiple states implemented similar laws without causing widespread layoffs.
Though members of the Senate are working to meet that deadline, and the committee’s action is guided by that deadline, there are some things lawmakers could adjust to lessen the impact of these new requirements if they fail to pass legislation before Feb. 21, Moss said.
“Everybody’s talking about this…. The way that we get this done, period, is if a Democratic-led Senate and a Republican-led House agree on a product that gets sent to the governor. That will be an evergreen statement that is true with this, that is true with anything. And so I know conversations are ongoing with our House counterparts,” Moss said.
Business advocates call for small business exemptions
During Tuesday’s meeting several business advocacy organizations packed into the committee room to underscore the impact the upcoming earned sick time act changes would have on small businesses, raising questions on how they would apply to seasonal workers, part-time employees and interns while others called for a small business exemption.
Wendy Block, senior vice president of business advocacy for the Michigan Chamber told the committee that the incoming changes to Michigan’s Earned Sick Time Act are a big change for businesses, even those who already offer generous paid time off to their employees, including those who offer unlimited paid time off.
“We are getting daily emails and phone calls saying, what is happening with this legislation? Is something going to happen, and we are reassuring them that we are cautiously optimistic that a deal can be found on this legislation,” Block said.
Amanda Fisher of the National Federation of Independent business said that small business owners often wear many hats.
“They’re the manager, they’re the accountant, they’re HR, and often they’re working side by side with their employees. And most small business owners do think of their employees as family,” Fisher said.
However the changes set to take effect on Feb. 21 create a one-size-fits-all system which could require businesses owners to cut their employees’ total paid time off to create a bank of PTO that can only be used for the specific purposes outlined in the law, Fisher said.
She also raised concerns about the direct and indirect costs small businesses will face to ensure they comply with the new law.
When asked what a small business exemption would look like, Fisher pointed to the House’s proposal of businesses with fewer than 50 employees as the ideal, but noted that any kind of pure exemption for small businesses would be appreciated.
Multiple individuals also raised concerns that the incoming sick leave changes, if left unchanged, would allow individuals to no-call, no-show for up to three days without notice, including Patricia Coates, Oakland County’s 911 coordinator, who asked the committee to incorporate an exemption for 911 and emergency services.
“There’s a lot to this job. It’s a very stressful job, and it’s a very long shift. And if you are the dispatcher who’s been there eight, 10, or 12 hours, and it’s your fifth, sixth or seventh day in a row, trust me, by the end of the shift, you’re watching that clock. You can’t wait for your relief to walk in the door. And they don’t call and they don’t show. So now it’s a scramble, because the next shift has to be staffed,” Coates said, noting that while sometimes people can stay voluntarily, there are also times where it is simply forced overtime.
There are already rules and regulations requiring emergency service workers to call in advance if they cannot come to work, Coates said, noting that if a worker does not show up for three days without notification, she is taking them off the schedule.
Unions, attorneys raise workers protection concerns
While most of Tuesday’s testimony centered around the impact the ordered changes would have on employers and small businesses, representatives from the Michigan Association of Justice and the Michigan AFL-CIO each took issue with S.B. 15 striking out language allowing employees to civil action against their employer for violating the Earned Sick Time Act.
“S.B. 15 comes from a better starting point than its House Counterpart due to maintaining some of the protections for workers, especially the continued prohibition on retaliatory actions by employers against employees who seek to exercise their rights under the act. With that, we are specifically concerned with the removal of the ability of Michigan workers to bring their own claims when an employer violates the Earned Sick Time Act,” said Mitch Albers, legal counsel for the Michigan Justice Association.
The change in the bill is both inequitable for employees and an inefficient use of tax dollars, Albers said, arguing the requirement for employees to file a complaint with the Department of Labor and Economic Opportunity would require additional staff to investigate, alongside additional staff within the Department of Attorney General if the matter is appealed. Removing the private right of action would create an additional burden on these agencies and limit employees’ rights to seek restitution in a timely manner, Albers said.
Ryan Sebolt, director of government affairs for the Michigan AFL-CIO also criticized S.B. 15 for exempting workers whose employers have mandated staffing ratios, requiring them to comply with their employer’s own paid sick time policy if their need for sick time is not foreseeable. He argued the law should include more specific language requiring employers to provide their written sick time policy to employees. If they do not, then they cannot deny that employee paid sick leave.
“Workers at all businesses, including small businesses, deserve sick leave. Michigan workers were unconstitutionally denied wages and benefits for the last six years. Legislation should focus on strengthening their ability to access those wages and benefits and further support, rather than undermine the Supreme Court,” Sebolt said.
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