August 12, 2024
![Michigan Paid Sick Leave Changes Coming in 2025](https://www.risk-strategies.com/hubfs/Michigan-Supreme-Court-700-468.jpg)
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Summary: On July 31, 2024, the Michigan Supreme Court ruled in Mothering Justice v. Attorney General that the Michigan state legislature’s 2018 adoption and amendment to the Michigan Earned Sick Time Act (MI ESTA) was unconstitutional. As a result, nearly all Michigan employers will be required to provide employees with more generous paid sick leave than what is currently required under Michigan’s current paid sick leave law called The Paid Medical Leave Act, beginning on February 21, 2025.
The Mothering Justice decision brings the ongoing Michigan paid sick leave litigation to a final close regarding the constitutionality of the ESTA amendment made to the law when it was first proposed as a citizen ballot initiative in 2018.
Read on for more information and next steps for employers.
The Mothering Justice lawsuit revolved around actions of the Michigan state legislature to quickly enact an amended version of the MI ESTA with significant changes, and renamed The Paid Medical Leave Act (MI PMLA).
In 2018, the paid sick leave requirements under the MI ESTA and minimum wage law[1] ballot initiatives were sent to the Michigan legislature. The legislature adopted the measures intact, resulting in their removal from the ballot for the 2018 election. Following the election and within the same legislative session, the legislature significantly amended both laws, becoming effective in 2019[2].
Mothering Justice, a labor advocacy organization, along with other groups, sued to challenge the constitutionality of the state legislature's actions with respect to both laws. The lawsuit worked its way through Michigan state courts, with the Michigan Court of Claims first ruling in favor of Mothering Justice and then the Michigan Court of Appeals reversing that decision. It ultimately ended up at the Michigan Supreme Court.
The Michigan Supreme Court reversed the Court of Appeals decision and ruled that the Michigan legislature’s “adopt-and-amend” procedural actions with respect to both laws violated the Michigan Constitution. The Mothering Justice decision by the Michigan Supreme Court reinstated the MI ESTA and the minimum wage law as they initially appeared on the ballot initiatives. Both the MI ESTA and the minimum wage law will go into effect on February 21, 2025.
Notably, the decision confirmed that employers will not be held liable for reasonably relying on state government assurances that MI PMLA and the amended minimum wage law were “good law,”[3] providing welcome relief for Michigan employers who have continued to comply with the MI PMLA.
The table below highlights the paid sick leave changes that employers will be required to implement for their employees working in Michigan, as a result of the Mothering Justice decision, starting on February 21, 2025.
Note that the MI ESTA requirements in certain instances are significantly more generous to employees than the current MI PMLA requirements.
Employers with employees working in Michigan should be aware of the Mothering Justice decision by the Michigan Supreme Court, which significantly expands paid sick leave rights for Michigan employees. Nearly every employer in the state will be covered under the MI ESTA and will be required to provide paid sick leave to their employees, beginning on February 21, 2025.
Additionally, employee eligibility for MI ESTA will broaden to apply to virtually all employees working in Michigan, with the exception of individuals employed by the United States government.
As the February 21, 2025 effective date approaches for MI ESTA requirements, employers with Michigan-based employees are advised to begin working with their employment and labor counsel now on the following items to ensure compliance:
Risk Strategies helps employers navigate the ever-changing and complex state/local paid leave landscape. Contact us directly at benefits@risk-strategies.com.
[1] The minimum wage law titled “The Improved Workforce Opportunity Wage Act” provides for an accelerated minimum hourly wage and tip credit schedule. Discussion of the Michigan minimum wage law is beyond the scope of this article.
[2] The MI PMLA went into effect on March 29, 2019.
[3] The Mothering Justice decision continued on regarding this point and stated that “’injustice might result’ if courts punished employers for following the law as provided on the state’s official websites.”
The contents of this article are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.