On February 21, Michigan’s new paid sick leave legislation will go into effect, impacting workers and businesses across the state. As a result, small businesses with fewer than 50 employees, which make up the majority of businesses in the state, face significant operational changes that will have the greatest impact on their employees. This change requires all businesses, including those previously exempt small businesses, to provide mandated sick leave to employees under new, vague and extraneous restrictions. Without amendments and clarification, the policy will have negative consequences for both employers and employees. Employers, especially small businesses and sole proprietors, will face increased administrative burdens and potential legal challenges, which could lead to reduced hiring, scaling back of benefits and hindered growth. Ultimately, this could also harm employees by creating instability in their workplaces and potentially limiting their career opportunities. Here are five ways that this legislation can work better for both employers and, ultimately, preserve employee experience and career stability.
1. Exempt Plans Meeting or Exceeding 72-Hour Mandate
Businesses that already offer sick leave benefits that meet or exceed the mandated 72 hours should be exempt from the new requirements. This approach encourages companies that are already providing generous benefits to maintain or improve those plans without being limited by red tape. It helps protect existing benefits, allowing businesses to focus on growth while ensuring workers continue to receive high-quality leave policies.
2. Use Leave in Full- or Half-Day Increments & Require Advanced Notice
One proposed reform is to allow paid sick leave to be used in full- or half-day increments and allow employers to require advanced notice. While this helps businesses serve their customers, it will significantly impact employees if they have to cover for coworkers who don’t provide notice or regularly come to work late.
3. Small Business and Employee Exemptions
Small businesses and certain workers, such as part-time and seasonal employees, should be exempt from the new requirements. By providing exemptions for the smallest businesses and certain categories of workers, the legislation can protect the jobs they offer and ensure they are not overburdened by regulations that could hinder growth. Small businesses often provide flexible, family-friendly work environments, which can and should be preserved.
4. Frontloading Leave
Another proposed reform is to allow employers to frontload 72 hours of paid sick leave at the start of the year. This gives employees peace of mind, knowing they have access to their full benefit from day one. For employers, frontloading simplifies tracking and helps with employee retention by reducing administrative burdens. Stunningly, front-loading like this may not follow the letter of the current law.
5. Eliminating Private Lawsuits
Eliminating the private right of action and rebuttable presumption would help streamline enforcement and avoid costly litigation. This part of the bill is currently vague, which will be a boon to lawsuits and lawyers while burdening the courts. Enforcement of laws are traditionally the function of government, and that should be the case here too.
6. Moving Forward
As the February 21 implementation date approaches, it’s crucial for workers and employers alike to ask for exemptions, changes and clarifications for their elected officials. Business groups, such as the West Michigan Policy Forum, are already engaging in dialogue to help ensure that the law can be implemented smoothly and, where necessary, reformed to work for both sides. However, your help is needed, and the business community is encouraged to reach out to their representatives to share both their concerns and these common sense solutions.
Learn about the West Michigan Policy Forum’s current priorities and sign up for updates on this legislation and more.
