2025 House Bill 4002

Labor: benefits; requirements for an employer to provide earned sick time, modify.

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).

Mackinac Center Analysis

The bill amends the Earned Sick Time Act ordered by the Supreme Court to take effect early in 2025 by making changes suggested by small business owners while allowing for more generous policies and collective bargaining agreements. Defines which employees are eligible and exempts independent contractors, out-of-state employees, seasonal workers (25 weeks or less) part-time (25 hours or less per week) and variable hour workers. Exempts small businesses (50 employee threshold). This is necessary to ward off a MI Supreme Court ruling that struck down the legislative tactic of "adopt and amend" and implemented a proposed ballot initiative that never went before the voters.

Introduced in the House

Jan. 9, 2025

Introduced by Rep. Jay DeBoyer (R-63) and 39 co-sponsors

Co-sponsored by Reps. Gregory Alexander (R-98), Joseph Aragona (R-60), Brian BeGole (R-71), Timothy Beson (R-96), Matt Bierlein (R-97), Ann Bollin (R-49), Ken Borton (R-105), William Bruck (R-30), Cameron Cavitt (R-106), Nancy DeBoer (R-86), James DeSana (R-29), Parker Fairbairn (R-107), Joseph Fox (R-101), Steve Frisbie (R-44), Jaime Greene (R-65), Mike Harris (R-52), Mike Hoadley (R-99), Nancy Jenkins-Arno (R-34), Tim Kelly (R-93), Tom Kunse (R-100), Sarah Lightner (R-45), Matt Maddock (R-51), Greg Markkanen (R-110), David Martin (R-68), Luke Meerman (R-89), Mike Mueller (R-72), David Prestin (R-108), Angela Rigas (R-79), John Roth (R-104), Kathy Schmaltz (R-46), Bill Schuette (R-95), Bradley Slagh (R-85), Alicia St. Germaine (R-62), Donni Steele (R-54), Curtis VanderWall (R-102), Pauline Wendzel (R-39), Jason Woolford (R-50), Jennifer Wortz (R-35) and Doug Wozniak (R-59)

Referred to the Committee on Protecting Michigan Employees and Small Businesses

Jan. 16, 2025

Reported from the Select Committee on Protecting Michigan Employees and Small Businesses with substitute H-1

Jan. 23, 2025

Substitute H-1 concurred in by voice vote

Amendment offered by Rep. Morgan Foreman (D-33)

1. Amend page 3, line 18, by striking out “50” and inserting “1”.

The amendment failed by voice vote

Amendment offered by Rep. Denise Mentzer (D-61)

1. Amend page 2, line 20, after “employer” by striking out the balance of the subdivision and inserting “in the business of the employer, except that employee does not include an individual employed by the United States government.”.

The amendment failed by voice vote

Amendment offered by Rep. Phil Skaggs (D-80)

1. Amend page 5, following line 10, by inserting:

“(n) (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.”.

2. Amend page 5, following line 23, by inserting:

“(2) (a) Employees of a small business shall accrue a minimum of one 1 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.” and renumbering the

remaining subsections.

3. Amend page 6, following line 22, by inserting:

“(3) (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.” and renumbering the remaining subsections.

4. Amend page 8, line 10, after “employer” by inserting “other than a small business”.

5. Amend page 8, line 16, after “(2).” by inserting “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.”.

The amendment failed by voice vote

Amendment offered by Rep. Matt Longjohn (D-40)

1. Amend page 7, following line 12, by inserting:

“(4) Notwithstanding any other provision of this act, an employer that employs fewer than

50 individuals shall provide an employee who worked not less than 1,000 hours in the immediately preceding year for that employer to take paid time off from work to do all of the following:

(a) Attend an annual wellness examination for the employee and, if applicable, each dependent of the employee.

(b) Attend all subsequent recommended and documented follow-up appointments related to a

wellness examination described in subdivision (a).” and renumbering the remaining subsections.

The amendment failed by voice vote

Amendment offered by Rep. Tonya Myers Phillips (D-7)

1. Amend page 11, line 2, by striking out the balance of the subsection and inserting “If the eligible employee’s need to use earned sick time is foreseeable, an employer may require advance notice, not to exceed 7 days prior to before the date the earned sick time is to begin, of the intention to use the earned sick time. If the eligible employee’s need for the earned sick time is not foreseeable, an employer may require the eligible employee to give notice of the intention as soon as practicable. As used in this subsection, “not

foreseeable” means any of the following:

(a) An unanticipated physical or mental injury, illness, or condition of an employee or a family member of the employee.

(b) Unanticipated and immediately necessary medical care, treatment, or diagnosis of the employee or a family member of the employee.

(c) The employee or a family member of the employee is a victim of sexual assault or domestic violence.

(d) An unanticipated meeting with the employee’s child’s school or place of care that is related to the child’s health or effects of sexual assault or domestic violence on the child.

(e) The employee or family member of the employee poses a threat to others because the employee or family member was exposed to a communicable disease.

(f) The employee’s work or employee’s child’s school is closed because of a public health

emergency.”.

The amendment failed by voice vote

Amendment offered by Rep. Kelly Breen (D-21)

1. Amend page 16, line 2, after “may” by striking out the balance of the subsection and inserting “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 eligible employee’s previous job; payment of back wages; reestablishment of employee benefits to which the eligible employee otherwise would have been eligible if the eligible employee had not been subjected to retaliatory personnel action or discrimination; the violation; and an equal additional amount as liquidated damages together with costs and reasonable attorney fees as the court allows.

(b) File a claim with the department, which shall investigate the claim. Filing a claim with the department is neither a prerequisite nor a bar to bringing a civil action.”.

2. Amend page 17, line 28, after “action” by inserting “as provided in subsection (1)(a)”.

3. Amend page 18, line 1, after “action” by inserting “under subsection (1)(a)”.

4. Amend page 18, line 3, after “site” by striking out the period and inserting “and who have not brought a civil action under subsection (1)(a).”.

The amendment failed by voice vote

Amendment offered by Rep. Joey Andrews (D-38)

1. Amend page 8, line 28, after “employee” by inserting a comma and “including tips and gratuities”.

2. Amend page 9, line 9, after the first “pay,” by inserting “or”.

3. Amend page 9, line 9, after the second “pay” by striking out the comma and “tips, or gratuities”.

The amendment failed by voice vote

Amendment offered by Rep. Julie Rogers (D-41)

1. Amend page 14, line 26, after “(2)” by inserting “An employer shall not take retaliatory personnel action or discriminate against an eligible employee because the eligible employee has exercised a right protected under this act.”.

The amendment failed by voice vote

Passed in the House 67 to 38 (details)

Motion to give immediate effect by Rep. Bryan Posthumus (R-90)

The motion prevailed by voice vote

Received in the Senate

Feb. 4, 2025

Referred to the Committee on Regulatory Affairs

Feb. 20, 2025

Discharged from committee

Referred to the Committee of the Whole

Reported with substitute S-3

1. Amend page 9, line 5, after “in” by striking out “a purpose” and inserting “the purposes”.

2. Amend page 9, line 7, after “for” by striking out “a purpose” and inserting “the purposes”.

3. Amend page 9, line 21, after “for” by striking out “a purpose” and inserting “the purposes”.

4. Amend page 10, line 3, by striking out the balance of the line through “plan.” on line 6.

5. Amend page 11, line 25, after “employer.” by inserting “Contributions required under the collective

bargaining agreement or other employment agreement for the paid sick leave plan are due on the same schedule as the other fringe benefit funds or plans to which the signatory employer must

contribute.”.

6. Amend page 22, line 6, after “contract” by striking out “prevents compliance” and inserting “conflicts”.

7. Amend page 22, line 8, after “employee” by striking out the balance of the subsection and inserting “on or before February 21, 2022, the small employer is not required to comply with this act until 3 years after the date that the employer first employs an employee.”.

Substitute S-3 concurred in by voice vote

Amendment offered by Sen. Aric Nesbitt (R-20)

1. Amend page 3, line 18, after “employs” by striking out “1” and inserting “50”.

The amendment failed 18 to 18 (details)

Passed in the Senate 26 to 10 (details)

Motion to give immediate effect by Sen. Sam Singh (D-28)

The motion prevailed by voice vote

Received in the House

Feb. 20, 2025

Amendment offered by Rep. Tonya Myers Phillips (D-7)

1. Amend page 3, line 6, by striking out all of subparagraph (ii) and renumbering the remaining subparagraphs.

The amendment failed by voice vote

Amendment offered by Rep. Tonya Myers Phillips (D-7)

1. Amend page 17, line 27, after “may” by striking out the balance of the subsection inserting: “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; the violation; and an equal additional amount as liquidated damages together with costs and reasonable attorney fees as the court allows.

(b) File a claim with the department, which shall investigate the claim. Filing a claim with the department is neither a prerequisite nor a bar to bringing a civil action.”.

The amendment failed by voice vote

Substitute S-3 concurred in 81 to 29 (details)