Michigan's paid sick leave story is one of the most legally dramatic in the country. In 2018, Michigan voters gathered enough signatures to put a paid sick leave initiative on the ballot — then the Republican-controlled legislature used a procedural tactic called "adopt and amend" to pass a weakened version of the law before the election, preventing the ballot measure from going forward. That weakened version — which only covered employers with 50 or more employees — became the law for years.
That changed in February 2025, when the Michigan Supreme Court issued its ruling in Mothering Justice v. Attorney General, finding the adopt-and-amend maneuver unconstitutional. The original 2018 ballot initiative language was reinstated. As of February 21, 2025, Michigan's Earned Sick Time Act (ESTA) covers all employers, with stronger protections for employees at larger employers.
⚖️ Michigan Earned Sick Time Act — At a Glance (2026, Restored)
The Legal History: Why Michigan's ESTA Was Weakened and Then Restored
Understanding what the law actually says in 2026 requires a brief history lesson:
- 2018: Advocates gather signatures to put Proposition 18-1 on the ballot — a paid sick leave initiative covering all employers, providing up to 72 hours annually.
- September 2018: The Michigan legislature "adopts" the initiative before the election using the adopt-and-amend tactic — passing the initiative and then immediately amending it to a weaker version that only covered employers with 50+ employees and reduced the annual cap.
- 2019–2024: The weakened Paid Medical Leave Act (PMLA) governs Michigan. Employers with fewer than 50 employees have no obligation.
- February 2025: Michigan Supreme Court rules in Mothering Justice v. Attorney General that the adopt-and-amend tactic was unconstitutional under the Michigan Constitution's initiative process. The original 2018 initiative language is reinstated as the valid law.
- February 21, 2025: Restored ESTA takes effect. All Michigan employers are now covered.
What the Restored ESTA Requires in 2026
Under the restored Earned Sick Time Act, Michigan employees accrue 1 hour of sick time for every 30 hours worked, beginning on the first day of employment. The amount of paid leave depends on employer size:
| Employer Size | Paid Sick Time (Annual) | Unpaid Sick Time | Total Accrual Cap |
|---|---|---|---|
| 10 or more employees | Up to 72 hours | None required | 72 hours |
| Fewer than 10 employees | Up to 40 hours | Up to 32 hours | 72 hours total |
The 90-day waiting period applies to usage — employees accrue from day one but may not use leave until they have been employed for 90 days. After day 90, the full accrued balance is available.
What Michigan Employees Can Use ESTA Leave For
The restored ESTA allows use of earned sick time for a broad range of purposes:
- The employee's own mental or physical illness, injury, health condition, or preventive care
- Care for a family member (child, spouse, parent, grandparent, grandchild, sibling, or any other individual whose relationship to the employee is "like that of a family") who is ill or needs preventive care
- Absences related to domestic violence or sexual assault experienced by the employee or a family member — including medical care, legal proceedings, safety planning, and relocation
- Closure of the employee's workplace or a child's school/childcare due to a public health emergency
The "like family" language in the ESTA is deliberately broad — broader than most state sick leave laws. If an employee has a close personal relationship to someone who needs care, there is a credible argument that person qualifies under the ESTA's family definition.
Carryover and Year-End Rules
Unused ESTA leave carries over from year to year, up to the applicable cap (72 hours for large employers, 72 hours total for small employers with the paid/unpaid split). Employers cannot zero out accrued ESTA leave at year-end.
Employers may front-load the full annual entitlement at the start of each year instead of using per-hour accrual. If they do, carryover is not required for the front-loaded amount. Many Michigan HR professionals have found front-loading simpler to administer under the restored law.
Vacation and PTO Payout at Termination
Michigan's ESTA does not require payout of accrued sick time at termination. But Michigan's Payment of Wages and Fringe Benefits Act (PWFBA) creates a parallel obligation for accrued vacation or general PTO: if an employer's written policy defines accrued PTO as a fringe benefit and promises payout at termination, the PWFBA treats those hours as earned wages. Withholding them is a wage violation subject to PWFBA penalties.
Michigan employers who wish to avoid vacation payout liability should have explicit written policies stating that unused vacation is forfeited at termination. Ambiguous or silent policies create exposure.
For Michigan Employers: Post-Restoration Compliance Priorities
- ☐ Determine your employee count — are you a "10 or more" employer (72 hrs paid) or a small employer (40 paid, 32 unpaid)?
- ☐ Update all written PTO/sick leave policies to reflect restored ESTA requirements effective February 21, 2025
- ☐ If you were a small employer previously exempt under the PMLA, you now have ESTA obligations — implement accrual tracking immediately
- ☐ Train HR and managers on the broader "like family" definition and expanded qualifying uses
- ☐ Decide: per-hour accrual or front-load? Update payroll system accordingly
- ☐ Update termination process — clarify vacation vs. ESTA sick time payout separately in offboarding documentation
- ☐ Post the required ESTA notice — available from the Michigan Department of Labor and Economic Opportunity
Track Your Michigan Sick Time All Year
With 72 hours of earned sick time now protected by law for most Michigan workers, staying on top of your balance matters. Use our free calculator to track your accrual year-round.
Open the PTO Calculator →Frequently Asked Questions
What is Michigan's Earned Sick Time Act?
Michigan's Earned Sick Time Act (ESTA) requires all Michigan employers to provide paid sick time. Following the Michigan Supreme Court's February 2025 ruling in Mothering Justice v. Attorney General, the law was restored to its original stronger form: employers with 10 or more employees must provide up to 72 hours of paid sick time per year; smaller employers must provide 40 hours paid and 32 hours unpaid.
When did the restored Michigan ESTA take effect?
The Michigan Supreme Court issued its ruling in February 2025, finding the legislature's adopt-and-amend tactic unconstitutional. The restored ESTA took effect on February 21, 2025. All Michigan employers — including those with fewer than 50 employees who were previously exempt — became subject to the law on that date.
How does sick time accrue under the Michigan ESTA?
Michigan employees accrue 1 hour of earned sick time for every 30 hours worked. For employers with 10 or more employees, up to 72 hours per year is paid. For employers with fewer than 10 employees, the first 40 hours are paid and additional accrual up to 72 hours is unpaid. Leave accrues from day one and may be used after 90 days of employment.
Does Michigan require vacation payout at termination?
ESTA does not require payout of sick time at termination. For vacation or general PTO, Michigan's Payment of Wages and Fringe Benefits Act treats accrued vacation as earned wages if the employer's policy promises payout. Employers who withhold promised vacation pay face PWFBA liability.
What is the difference between the original 2018 ESTA and the weakened 2019 amendment?
The original 2018 ballot initiative covered all employers and required 72 hours of paid sick time for employers with 10+ employees. The legislature's amended version (the Paid Medical Leave Act) only covered employers with 50+ employees and capped leave at 40 hours. The Michigan Supreme Court's February 2025 ruling struck down the amended version and reinstated the original, stronger law.
Can Michigan employers use existing PTO policies to comply with ESTA?
Yes. If an employer already provides paid leave that meets or exceeds ESTA requirements and allows use for qualifying illness and care reasons, the existing policy satisfies ESTA. The leave does not need to be in a separate "ESTA" bank — it just needs to meet all the law's standards for accrual, usage, and carryover.