Nexus Benefit SolutionsCall 616.425.9740

ESTA · All Michigan employers

Michigan Earned Sick Time Act: an employer guide

Michigan’s Earned Sick Time Act now covers every employer, including those with 10 or fewer employees since October 1, 2025. Here are the rules in plain English, straight from LEO guidance and the statute.

Your info goes to one licensed Michigan advisor, never sold. Not to a call center, not to a list of “partners.”

  • 1 hour per 30 worked
  • 40 or 72 hours
  • Small business since Oct 1, 2025

Talk to a benefits advisor

Your info goes to one licensed Michigan advisor at Nexus. Never sold. No pitch, no obligation.

This is a request for a conversation, not an application for coverage. Please don’t send employee names, health information or claims details through this form; we’ll set up a secure way to share a census later.

The core rules

Small business (10 or fewer)All other employers
AccrualAt least 1 hour per 30 hours workedAt least 1 hour per 30 hours worked
Paid use you can cap at40 hours a year72 hours a year
Frontload instead40 hours at the start of the year72 hours at the start of the year
Carryover (accrual method)Up to 40 hoursUp to 72 hours
EffectiveOctober 1, 2025February 21, 2025

Source: Michigan LEO, Earned Sick Time Act FAQ (revised July 22, 2025); MCL 408.963.

Who counts as a small business

Count everyone who works for compensation in a given week: full-time, part-time, temporary and staffing-agency workers, across the whole U.S. You’re not a small business if you had more than 10 employees during any 20 or more workweeks in the current or prior calendar year. [MCL 408.962; LEO FAQ]

A small business that didn’t employ anyone on or before February 21, 2022 doesn’t have to comply until 3 years after it first hires. [MCL 408.972(3)]

Request a benefits & PTO review

Using sick time

  • Reasons: the employee’s or a family member’s illness, injury, care or preventive care; needs related to domestic violence or sexual assault; school meetings about a child’s health or disability; and certain public-health closures.
  • Family includes children, parents, spouses or domestic partners, grandparents, grandchildren, siblings and anyone related by blood.
  • Waiting period: with the accrual method, new hires can be asked to wait until their 120th calendar day; not when you frontload.
  • Notice: up to 7 days’ advance notice if foreseeable; “as soon as practicable” or per a written policy if not.
  • Documentation: only for more than 3 consecutive days, due within 15 days of your request, at your expense, and without details of the illness.

Source: LEO ESTA FAQ, questions 15–26.

Records, notices and penalties

  • Keep records of hours worked and sick time taken for at least 3 years.
  • Give each employee written notice of ESTA rights at hire, and display the LEO poster.
  • Your existing PTO policy can satisfy ESTA if it provides at least the same time, for the same uses, under the same conditions.

Penalties under the statute: a civil fine of up to 8 times the employee’s normal hourly wage for failing to provide earned sick time, up to $1,000 per retaliation violation, and up to $100 per willful notice or posting violation, on top of employees’ remedies. [MCL 408.967]

Where sick time meets your benefits

ESTA is an employment law, not an insurance product, but it touches benefits design: how PTO, sick time and short-term disability fit together, how leave runs alongside FMLA (ESTA time can run concurrently when the leave qualifies for both), and what your handbook and enrollment materials say. [LEO FAQ Q30]

When we review your benefits, we’ll flag where your PTO and leave setup looks out of step with ESTA so you can take it to your employment attorney or payroll provider. We don’t give legal advice.

Five-step ESTA check

  1. Recount employees, including part-time, temporary and staffing-agency workers.
  2. Pick accrual or frontloading per employee class, and write it down.
  3. Test payroll accruals by hand for a sample employee.
  4. Align PTO uses, notice and documentation rules with ESTA.
  5. Train supervisors on what they can and can’t ask.

Official resources: LEO Earned Sick Time Act page (FAQ and required poster).

Related: our ESTA one-year compliance update, churches & nonprofits (ESTA has no religious or charitable exemption), QSEHRA for small teams and the mid-market overview. This page is general information based on LEO guidance and the statute as of October 14, 2026; it is not legal advice.

2-minute advisor Q&A

ESTA in 2 minutes

A Nexus advisor answers the questions we hear most. (Video coming soon.)

  • Are we a small business under ESTA?
  • Accrual or frontloading?
  • Does our PTO policy count?

Frequently asked questions

Does Michigan's Earned Sick Time Act apply to small businesses?

Yes. It covers all Michigan employers with one or more employees. Small businesses (10 or fewer employees) had until October 1, 2025, and their employees accrue 1 hour per 30 hours worked with paid use that can be capped at 40 hours a year.

How much sick time do Michigan employers have to give?

Employees accrue at least 1 hour for every 30 hours worked. Employers can cap paid use at 72 hours a year (40 for small businesses), or frontload 72 hours (40 for small businesses) at the start of the year instead of tracking accrual.

Can I require a doctor's note under ESTA?

Only for earned sick time of more than three consecutive days. The employee has 15 days after your request to provide it, you pay any out-of-pocket cost, and it shouldn't describe the illness, according to LEO.

Is there a waiting period for new employees?

If you use the accrual method, you can require employees hired on or after February 21, 2025 to wait until their 120th calendar day to use accrued sick time. The waiting period doesn't apply if you frontload.

Can my PTO policy count toward ESTA?

Yes, if it provides at least the same amount of time, for the same purposes, under the same conditions, accrued at the same rate or better.

What are the penalties for violating ESTA?

Under MCL 408.967, a civil fine of up to 8 times the employee's normal hourly wage for failing to provide earned sick time, up to $1,000 for each retaliation violation and up to $100 for each willful notice or posting violation, plus employee remedies such as back pay.

Where are you on the benefits ladder?

Just you (or you + spouse)Self-employed & individual plans2–50 employeesSmall group, ICHRA, QSEHRA, level-funded50–500 employeesSelf-funding, stop-loss, benchmarks

Keep exploring

Amaze Health virtual careUnlimited visits, about $49/mo (not insurance)Integrity Well-Being & AmazeWellbeing program through payrollSmall business (2-50)Group, level-funded, ICHRA and QSEHRA (2–50)ICHRASet a budget; employees pick individual plansQSEHRATax-free allowance for teams under 50Level-fundedSet monthly cost with stop-loss protection2027 renewal auditMark up your 2027 renewal before you signChurches & nonprofitsChurch-plan, ICHRA and ESTA questionsMid-market (50-500)Funding options and ACA rules for 50–500Self-funding & stop-lossSpecific and aggregate stop-loss explainedBenefits benchmarkCompare your plan to published dataBroker second opinionWhat to check before you switch brokersICHRA overviewNexus ICHRA servicesGroup benefitsDental, vision, life and disability

Small-business pages by region

Buying coverage for yourself or your family? See Michigan Open Enrollment 2027.

Get a benefits reviewCall