Navigating policy changes can be challenging, especially when new regulations like Michigan’s new paid sick leave policy dramatically change the way some businesses operate. Michigan’s paid sick leave policy mandates the introduction of or increases to paid sick leave hours for employees, applying to every employer across the state when it goes into effect on February 21, 2025. To help your business adapt smoothly, here are three considerations for businesses, as well as three considerations for legislators.
For Businesses
Before this policy goes into effect, it’s important for business owners to understand how it may impact their operations. This includes:
1. Reviewing Your Current Policies
Take a look at your existing policies and identify any gaps compared to new requirements. This is crucial for understanding what needs to be updated and where compliance risks might lie.
2. Consulting Legal Expertise
Consult an HR or legal expert to review your policies for compliance with current regulations. A professional review can ensure you’re protecting both your business and your employees.
3. Communicating Changes Clearly
Think about the best way to communicate any changes to employees. Clear communication ensures everyone understands their rights and obligations, which leads to smoother transitions and fewer compliance issues.
For Legislators
Legislators need to carefully consider the impact on small businesses, the administrative burden on employers, and the ultimate harm to employees who will bear the impacts of these mandates. This includes:
1. Frontloading Paid Leave
Legislators should allow employers to frontload paid sick leave at the start of the year. This allows employees to use their leave without the burden of continuous tracking and minimizes administrative workload.
2. Simplifying Leave Usage
Set clear rules about how leave can be taken—for instance, allowing employees to use leave in full- or half-day increments. This makes it easier for employers to plan around absences while staying compliant.
3. Providing Exemptions for Employers Meeting or Exceeding Mandate
Legislators should exempt employers who already meet or exceed the mandated 72 hours of paid leave. This can reduce redundant administrative requirements and reward businesses that are proactive in supporting their employees.
4. Exempting Small Business and Employee Exemptions
Exempting small businesses and certain workers, such as part-time and seasonal employees, from the new requirements can protect jobs and prevent overburdening smaller employers with regulations that could hinder growth. Small businesses often provide flexible, family-friendly work environments that should be preserved.
5. Eliminating Private Lawsuits:
Enforcement should not be outsourced to trial lawyers. Removing the private right of action and rebuttable presumption would streamline enforcement and avoid costly litigation. Enforcement of laws is traditionally the function of government, and this should apply here to prevent unnecessary legal challenges.
Act Now by Contacting Your State Reps
There is still much planning and clarity needed ahead of the paid sick leave’s February 21, 2025 implementation. It’s important for employers, employees, and the general public to make sure to let their representatives know the need for common sense solutions immediately.
Contact your state Senator and Representative today and tell them to stand up for pro-business, pro-economy policies. While you’re here, stay connected with the West Michigan Policy Forum for updates on paid sick leave and more.
