NEWS
NATO of Michigan’s lobbyist, Karoub Associates, monitors all relevant legislation, keeps members apprised of happenings, and issues calls to action when advocacy is needed. Bookmark and come back to this page often to stay up-to-date on vital information.
FEBRUARY
21
2025
Governor Whitmer has signed both the sick time (HB 4002) and minimum wage (SB 8) bills as passed by the Legislature. The provisions of both bills took effect at 12:02 am on February 21.
Below is a summary of the key provisions, based on our analysis of what was presented to the Governor (HB 4002, SB 8); be sure to consult with a human resources professional for guidance:
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Increase the minimum wage to $15 by 2030
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Increase the tipped minimum wage to 50% of the minimum wage by 2031
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Require that employers provide employees one hour of paid sick time for every 30 hours worked
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Define a small business as having 10 or fewer employees
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Give small businesses until October 1 to comply with the paid sick time requirements, including providing 40 hours of paid sick time to each employee
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Grant small businesses that begin operating after February 21, 2025, a three-year grace period before needing to comply with the paid sick time requirements
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Require employers will 11 or more employees to provide 72 hours of paid sick time, with a 72-hour carryover cap from year to year
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Allow employers to designate paid time off as a combined paid time off/sick leave bank; for those using a combined leave bank, 72 hours of time will be subject to the paid stick time provisions, with anything beyond that being able to be used according to an employer’s vacation or paid time off policy or usage requirements
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Allow employers to provide all sick time hours frontloaded at the start of the year and allows employees to use the frontloaded time immediately
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Exempt employers that frontload time at the start of the year from having to record the accrual of sick time
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Subject part-time employees to proportional frontloading based on the initial estimate provided by the employer at the time of hire
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Exempt employers who frontload sick time at the start of year from having to allow employees to carry over unused sick time from year to year
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Prohibit seasonal employees from using sick time within 120 days of employment unless sick time is frontloaded
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Exempt variable hour employees and unpaid trainees and unpaid interns from the act’s provisions