Michigan's new sick time laws were passed by the state legislature on Sept 5. 2018. At this time, Michigan became the 11th state to adopt mandatory sick leave for employees, also known as the Paid Medical Leave Act (PMLA).

What does this mean for your business?  Here we will explain what the law is, how it affects your business, and what you need to do to stay legal.

This act officially became effective on March 29, 2019.

Please note that laws are consistently changing, so please reference the Michigan Legislature here for updates. 

Employers Must Give Sick Time Off

This new act effectively mandates that employers must establish a PTO policy where all employees (full or part time) must accrue a minimum of one hour for every 35 hours worked.  Accruing hours could also be viewed as earning hours, so if an employee worked 1,000 hours in one year, you would divide the 1,000 hours by 35 (1000 / 35 = 28.57), which equals 28.57 hours of sick time.

Who Is Not Entitled To Paid Sick Leave?

There are 12 categories of employees who are not eligible for the Paid Medical Leave Act (PMLA). You can view a complete list of non-eligible employees at this website: https://www.michigan.gov/lara/0,4601,7-154-59886_91049---,00.html.

Max Sick Accrued Depends on the Size of Your Company

Per the act, an employer with 49 employees or fewer is exempt. If a company has 50 employees or more, it does not fall under the “small business” clause, and employees will be due more paid sick time.

49 Employees Or Fewer

With a small business of 49 or fewer employees, workers are not entitled to additional paid sick days.

50 Employees Of More

Michigan businesses with 50 or more employees may accrue up to a maximum of 40 hours of paid sick leave.  There is no allowance for unpaid sick leave here -- all 40 must be paid.

An employer may choose to increase the maximum amount an employee may accrue, if they so choose, but the amount cannot be lowered.

Approved Uses of Sick Time

Under Michigan's new paid sick leave act, there are definitions of what is considered “sick time”.  Here are some high-level concepts aiming to define exactly what is sick time.

• The employee requires mental or physical care or treatment.
• The employee's family members require physical or mental care. To apply, the employee is required to meet at the child's school or place of care related to his or her health or disability.
• The employee's child's place of care or school closes.
• Physical care or treatment may include care for sexual assault or domestic violence.

Accrued Sick Time Carries Over from One Year to the Next

According to the Michigan Department of Licensing and Regulatory Affairs, the new Michigan Paid Medical Leave Act states that unused employee sick time (up to 40 hours) can be carried over to the next year, but employers are not required to allow employees to use more than 40 hours in a single benefit year.

For example, if your employee accrues 35 hours of sick time but only uses 10 hours on sick days, there is a remaining balance of 25 sick hours. Employers can carry the 25 hours over into the next calendar year, and the employee will effectively start the year with a positive bank of 25 sick hours. 

It's important to note the employer has the option to give the 40 hours upfront or decide to have employees accrue or prorate the hours. An employer also has the right to wait 90 days after an employee starts his or her job until he or she can use the sick time. 

Additionally, you, the employer, can choose how to calculate a “year” under the act.  A year must is defined as any consecutive 12-month period, for instance, from March 29, 2019, to March 28, 2020.

Accrued Sick Time Must Be Recorded

The new sick time act requires that all Michigan employers retain a minimum of three years of records documenting employees' hours worked and sick time taken.  These records must be properly recorded and easily understandable. 

How You Can Comply

The first thing that needs to be done is to set up proper employee time tracking and sick time off accruals. You can do this manually using pen and paper or even Excel.  While these manual systems will work, it is generally better to use online software, such as OnTheClock, or do a Google search for something like “Employee Time Clock” for another solution. 

The second item is to set up a PTO policy that covers Michigan paid sick time law. Keep in mind your company size, as 49 or fewer employees do not fall under the new Michigan Paid Sick Leave Law, and 50 or more employees are required to pay employees up to 40 hours for sick days. 

For additional information on how to track PTO or if you would like to understand more about proper paid time off, visit our Employee PTO Section.