Deadline Nears for Changes to Michigan’s Earned Sick Leave and Minimum Wage Changes

This Friday, February 21, 2025, is the deadline for the Michigan Legislature to make any changes to the state’s earned sick leave and minimum wage laws before the Michigan Supreme Court order (the “Order”) takes effect. If no changes are made, employers will need to implement new earned sick leave policies and increase wages for minimum wage workers pursuant to the Order.  

Alternatively, if the Michigan Legislature comes to an agreement before Friday, employers will need to take note of any changes to the current state of earned sick leave and minimum wage rates in Michigan. 

Earned Sick Leave Requirements under the Order

Under the Order, all employers in Michigan (those with 1 or more workers) will be required to provide earned sick leave to all employees – full-time and part-time workers are covered. The amount of earned sick leave which can be taken each year will increase to 72 hours, up from 40 hours currently. Employers with 10 or less employees will be required to allow 40 hours of paid sick leave for their employees with the other 32 hours must be allowed to be taken as unpaid sick leave. 

Some of the changes that would go into effect under the Order include expansion of the eligible reasons employees may take earned sick leave, expanded definition of a covered family member, extended retention requirements, additional notice requirements, and changes to when employers are allowed to request supporting documentation for the employee’s leave. 

Minimum Wage Requirements Under the Order

If the Order takes effect Friday, the minimum hourly wage (currently $10.56) will increase to $12.48. The Order also calls for the following increases on February 21 each year: 

• February 21, 2026 – $13.29 
• February 21, 2027 – $14.16 
• February 21, 2028 – $14.97 

The minimum wage will be indexed going forward each year thereafter. Wages for tipped employees will be a percentage of the minimum wage, which increases each year until February 21, 2030, when the tipped employee wage will equal the standard minimum wage in the state. 

Status of Michigan Legislature’s Efforts to Implement Changes Before the Deadline

Negotiations are underway to amend both statutes. The Senate and House may have reached a deal on the minimum wage increase. The deal would increase the standard minimum wage faster than under the Order. Under the potential deal, the minimum wage would increase to $12.48 immediately, in 2026 the rate would increase to $13.73, and in 2027 the minimum wage would increase to $15.00 per hour. 

The House approved a bill to change some of the earned sick leave rules, and the bill is now before a Senate committee. Under the bill, small employers (10 and less employees) would be exempt from the earned sick leave law with a tiered approach for medium and large employers. 

The Legislature needs to agree upon on changes to both the minimum wage increases and the earned sick leave changes to avoid the Order from going into effect on Friday.  

Last week, Governor Gretchen Whitmer suggested pushing back the February 21 deadline until July to allow for further negotiations, however, that has not occurred yet.  

Conclusion

Employers in Michigan should keep an eye on the news for updates and be prepared to amend their minimum wage rates and earned sick leave policies, as necessary. Need help navigating the ever-changing minimum wage rates and paid leave regulations at state, county, and city levels? Learn how GovDocs Minimum Wage and GovDocs Paid Leave can help.