Michigan Earned Sick Time Act

When Michigan’s Earned Sick Time Act (ESTA) went into effect in February 2025, many employers focused on the first steps: updating handbooks, reviewing payroll systems, and making sure employees understood the new requirements.

Now that employers have had time to work with ESTA in real situations, many of the questions are less about understanding the law and more about applying it correctly.

An employee calls off unexpectedly. A new hire asks when they can begin using sick time. A manager is unsure whether a request should be handled under company PTO or ESTA. These everyday situations are where employers often find that the details matter.

 

Frontloading vs. Accrual: Make Sure Your Process Matches Your Policy

One of the biggest areas of confusion with ESTA continues to be the difference between frontloading and accrual. Some employers choose to provide employees with their available sick time upfront at the beginning of the benefit year. Others track time as employees earn it over time. The issue is not just choosing a method – it is making sure the entire process matches.

For example, an employer may have a handbook stating employees receive their sick time upfront, but payroll records are tracking hours as if employees are earning them each pay period. While the employer may believe  they are providing the correct amount of time, the employee’s available balance may not be accurate.

When policies, payroll, and tracking systems do not align, questions can arise when employees request time off or review their available balances.

 

Tracking Usage: Knowing What Employees Have Available

Tracking earned sick time is one of the areas where employers often discover problems after the policy is already in place. Employers should be able to answer basic questions: How much sick time does an employee have available? How much have they used? When was it used?

A common challenge is when sick time is tracked in multiple places – for example, payroll, spreadsheets, and manager records – and those records do not end up matching. This can create confusion when an employee believes they have available time remaining, but the company’s records show something different. Having one consistent tracking process helps prevent disagreements and makes payroll records easier to understand.

 

Employee Requests and Documentation: Having a Clear Process

Employers often have questions about what they can request when an employee uses earned sick time and how those requests should be handled.

The first step is making sure employees understand the process. Employees should know who they need to notify, how requests should be submitted, and what information is needed.

For example, a manager may receive a text message that an employee will be out for the day. Without a clear process, the manager may not know whether the time should be recorded as ESTA, PTO or another type of absence. Clear communication helps managers handle requests consistently and helps employees understand expectations.

Waiting Periods: Avoid Confusion with New Employees

New hire waiting periods are another area where employers often have questions. Michigan ESTA allows employers to establish certain waiting period requirements before new employees can use earned sick time. However, the waiting period needs to be communicated clearly and applied consistently.

A common issue is when an employee completes onboarding but does not fully understand when they are eligible to begin using available time. Including this information during the hiring process and reviewing it with employees can prevent confusion later.

 

Review How ESTA Works in Practice

Many employers updated their policies when ESTA first became effective, but real-world situations often reveal areas that need clarification.

After a year of using the policy, employers should consider:

• Are employees following the correct call-off procedure?
• Do managers know how to handle sick time requests?
• Does payroll accurately reflect usage?
• Are policies matching the way the business actually operates?

Small adjustments can help prevent larger issues and make the process easier for both employees and management.

 

Staying Ahead of Workplace Changes

Employment laws continue to evolve, and keeping up with the details can be challenging while also managing the daily responsibilities of running a business.

Taking time to review policies, confirm payroll practices, and make sure records are accurate helps employers stay prepared and avoid unnecessary issues.

If you have questions about your sick time policy, payroll tracking, or compliance requirements, UAP is here to help!