If you’ve been waiting to hear the status of the Earned Sick Time Act (ESTA) before updating your leave policy, you’re in good company.

We had hoped that there would be some movement on this during the end of the year lame duck legislative session but weren’t that lucky. Fortunately, the new legislature seems to be making this a priority. The House has already passed legislation that would change several key elements. Some of those items are listed below:

• Excludes employers with 50 or fewer employees.

• Excludes employeees who work less than 25 weeks per year.

• Excludes employees who regularly work less than 25 hours a week.

• Allows employers to limit the carrryover of ESTA time to 72 hours.

• Allows employers to provide paid earned sick time at the beginning of a benefit year and avoid the carryover requirement.

There are more details in the House bill, but these are the ones that we found addressed the most problematic aspects of the original bill when discussing the changes with our customers.

Now it’s up to the Senate to act before the current law goes into effect on February 21st.

If you haven’t nudged your state Senator, now is the time.

We’ll keep you posted on additional changes as they come along. In the meantime, here’s a link to a matrix produced by the Chamber of Commerce detailing the components of the two bills:

https://www.michamber.com/wp-content/uploads/2025/01/HB-4002-vs-SB-15-Comparison-Doc_updated-1-17-25.pdf

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

Meet Kevin Brozovich, energetic entrepreneur, people-focused team-builder and HR practitioner-turned consultant. For almost 10 years, Kevin was Founder and Chief People Officer of HRM Innovations, a Kalamazoo-based Human Resources consulting firm many would consider the top in the region. After pulling his hair out making daily decisions about running the business (does it matter where the coffee comes from?), Kevin joined forces with the Rose Street Advisors team so he could solely focus on what he loves most: working with clients.

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When HR Goes Wrong

I recently facilitated an HR session for Humanergy’s High Impact Leadership Training (HILT) program. During it, a leader described a situation that was occurring at their organization. While I’m usually careful never to say this, there was no way of denying what it was - bad HR. As soon as I said it, people started to chime in with times when they had experienced bad HR. Frankly, I was shocked and embarrassed by the examples they shared.

That led me to ask some of my other networks what their HR experiences have been like. The responses have been humbling. As an HR professional, I think people are hesitant to vent to me about my profession, but when I asked, the flood gates opened.

Some of the more noteworthy examples:

• An employee who suffered hearing loss due to an injury asked HR about accommodations under the ADA. HR suggested that the employee learn sign language even though none of her co-workers knew how to sign.

• A company told their existing employees that they were paying new hires more money than them so they could recruit people.

• An employee told HR they felt misled about the position HR had described when they started. HR said they wouldn’t conduct an exit interview when they left because they didn’t want the feedback.

• An HR professional who made offensive comments about an employee who was perceived to be gay.

• An HR professional who refused to act on a sexual harassment complaint because “that’s just what he does…”

• An HR professional who would openly talk about the personal and medical situations of her employees without any regard for confidentiality.

What do we do to reduce the incidents of bad HR?

• If you are working as an HR person, invest the time to learn the basic employment regulations. SHRM has good information, and many firms provide courses, webinars, or podcasts. Attend them.

• Get certified. Hit the books and take the exam. You’ll be glad you did.

• Consider your employees when making a decision. Ask “How would I feel if I were in their shoes?”

• Keep a balance. Yes, the company signs your paycheck, but if you can’t be objective when looking at an issue, you’re doing everyone a disservice.

• Ask for professional help when you are working on a sticky issue.

There will always be times when HR folks will have to make difficult and unpopular decisions, but if we’re up to date on the regulations, treat people with respect, and are cognizant of the impacts our decisions make, hopefully we can limit adding any more fuel to the “bad HR” fire.

Got a bad HR story you’d like to share? Let us know.

Dealing with a situation that has the potential of ending up as a bad HR story on Reddit? Call us. We can help.

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

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How Not to Terminate an Employee

Hate having to terminate employees? When you work in HR, or leadership, it comes with the territory. That doesn’t make it easy. Still, it can be necessary. Let’s start with what not to do. Recently a friend found out that his hybrid job was eliminated when he could not login to his computer from home. When he called the IT department, he was redirected to HR. Don’t be that employer. What should you do? Being a good human is a nice start. From there, you should: Include HR. If you are a leader doing this, engage your HR resource early. HR is your friend in this situation. They’ve done this before and know how to do it safely and legally. Do terminations face to face. Remote employees are the only ones you should meet online. Terminations via text, email, or worse, social media, are never acceptable. Do explain the reason. Employees deserve to know why they are being fired. It’s much easier for them to process if they understand why. Leaving them to fill in the gaps opens the door for them to speculate about reasons that are not only inaccurate, but potentially unlawful. Treat them with respect. Losing your job is hard. Kicking the person when they are down is only going to exacerbate the situation and open the door to workplace violence. Be kind, be compassionate. Provide Assistance. Especially if you recognize an employee is in a vulnerable place, make certain to connect them with a support option. Connect them to your EAP or an outplacement service. Have a plan. No one should be fired without a well-coordinated plan to collect their things, continue their benefits, and collect their last check. Keep it calm. Terminations in the heat of the moment are never a good idea. If things are hot, suspend the employee until cooler heads can prevail. Have a difficult situation that you need to address? Give us a call, we’re happy to help.

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

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ESTA, ESTA - Read All About It!

ESTA, Michigan’s Earned Sick Time Act continues to raise questions for employers, particularly smaller employers who offer limited paid sick time. For example: • If you have 10 or more employees (including full-time, part-time, and temporary employees), you are required to provide at least 72 hours paid sick time • If you have less than 10 employees, you still need to offer 72 hours, but only 40 of those hours need to be paid. • Employees can use the paid time off in amounts equal to "the smallest increment of time used by the employer's payroll systems for absences. February isn’t that far away, so what should we be doing to prepare?

Should employers be evaluating their current time off policies and comparing them to the new requirements?

Absolutely, this is the time to look at what you do and what changes you should be making.

When should we implement these changes?

Our thought about this in August was that the law was not likely to be a priority for lawmakers during election season and probably would not change. However, there’s been significant lobbying since then, so we are encouraging our customers to hold off on any changes until the end of the year to see what develops.

What should I be looking for in my policy?

If you have 10 or more employees, you should be making certain that you provide 72 hours of paid time off, that you provide for employees to take that time for the reasons listed in the Act (Domestic violence, sexual assault, care for family members, etc.) and that they are able to accrue and carry over up to 40 hours of unused time into the next year. Want more details? The state has published a helpful page of FAQ’s for employers who are working to plan ahead for the new law. We’ll continue to keep you posted as the news on this law evolves. Questions? Our team is only a call away!

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

Interested in more?

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Michigan's Minimum Wage &
Paid Medical Leave Laws -
Here We Go Again!

If you’re feeling a bit of whiplash regarding the minimum wage and paid medical leave news in Michigan, you’re in good company. Frankly, I’ve lost track of the number of times this has been the topic of the Fun Socks blog.

As a quick refresher, here’s the history:

In 2018, a petition drive was successfully headed to get both a minimum wage proposal and a provision for earned sick time on the ballot for the fall election. The legislature at that time decided to adopt the ballot proposals, making the ballot initiatives unnecessary. The initiatives were dropped, and the Michigan Earned Sick Time Act and the minimum wage standard were adopted. Then, during the lame duck session after the election, the legislature significantly changed the acts by passing the Paid Medical Leave Act and Michigan’s Improved Workforce Opportunity Wage Act of 2018. Several groups filed a lawsuit challenging the constitutionality of those Acts arguing that the legislature usurped the rights of the people to implement a ballot initiative.

The initial court ruled that the adopt and amend process was unconstitutional, that decision was overturned by the court of appeals, which was just overturned by Michigan’s Supreme Court.

What does this mean to employers?

The Improved Workforce Opportunity Act and the Paid Medical Leave Act have been eliminated. Both will be replaced by the original ballot initiatives that voters were to consider in 2018 and will take effect February 21, 2025.

What will be the new minimum wage?

We’re not certain yet. The Michigan Supreme Court has tasked the State Treasurer with calculating the inflationary impacts that have occurred since the original 2019 effective date of the ballot initiative.

How much paid time off will we need to offer?

Employers with 10 or more employees will need to offer 72 hours of paid time off per year. It will be accrued at a rate of one hour for every 30 hours worked.

Employers with less than 10 employees still need to offer 72 hours of leave time, but only 40 of those hours need to be paid.

Does this apply to all employees?

Yes. It applies to full time, part time, and temporary employees.

What else?

Employers need to allow employees to take their paid sick time in the smallest increment of time tracked by their timekeeping system.

How should we prepare?

Theres’ some discussion that the legislature will step in with new legislation this fall. I think that is unlikely to happen during the height of a presidential election. For now, HR leaders should use the time before February to review their current policies and compare them to the Michigan Time to Care initial ballot initiative to see what changes they will need to make.

Here's the link: https://legislature.mi.gov/documents/2017-2018/initiative/pdf/MITimeToCareFINAL.pdf

The original ballot initiative for the Improved Workforce Opportunity Wage Act link is:

https://www.michigan.gov/-/media/Project/Websites/sos/04holland/R3792_Wage.pdf?rev=f9ec92df8ffe443d85d63ee32cd82056

Questions? The HR Consultants at Rose Street Advisors are happy to help!

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

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Employees & Substance Abuse

One of the hardest issues a leader may face is an employee with a substance abuse issue. I wanted to learn more about managing this situation, so I took my Fun Socks notebook on the road and interviewed an expert.

In addition to being a great human, Sean Harris, Ph.D, LBSW is the Executive Director of the Recovery Institute here in Kalamazoo. His organization offers peer support services to people who have mental health and/or substance use concerns.

Here are some highlights from our conversation, minus the personal catch-up piece:

How do you know when an employee might be suffering from substance use issues?

Substance abuse challenges can appear in multiple ways. Some of the most common are poor job performance, absenteeism, poor attitude, variable mood temperament, and mistakes. These are important to watch for especially if they represent a change from an individual’s normal behaviors.

Can you ask an employee if they have a substance use issue?

You can ask, but it is highly unlikely that they will acknowledge that they have an abuse issue. This is something that people stay in denial about, even to themselves.

How can you improve their situation?

It’s best to focus on managing their performance, not on trying to identify a substance use issue. Set clear expectations and monitor their work. Address performance issues as they arise. If they come to you for help, offer support at that time. Until then, let them know you have an open door if they want to talk.

If you have an employee who fails a drug test, what can you do?

Depending on your drug policy, you may have the option of terminating the employee or offering them assistance. If you offer assistance, include a plan for random drug testing to ensure compliance going forward.

What if an employee admits to having a problem?

You should refer them to your Employee Assistance Program (EAP), a qualified substance abuse counselor, or a treatment center for them to develop a treatment plan.

What is the success rate for employees with substance abuse challenges?

Substance abuse is a chronic condition that is hard to overcome. Individuals often need to hit bottom before they can enter recovery. As leaders, the best route is to provide support and accountability. The employee will need to pick their own path.

Interested in learning more or supporting the work of the Recovery Institute of Southwest Michigan? Read more at: www.RecoveryMI.org

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

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Are You Evaluating Employees or Developing Them?

While leaders inevitably complain about having to do reviews, they also say that they want to develop their employees. How do those two concepts coexist? Think of it like this: Reviews are foundational. If you don’t have good base information, you can’t develop a plan to encourage change and growth. To get that base, you need more than what a basic performance evaluation provides. After all, if the only information you share about an employee is whether they meet expectations, exceed them, or shouldn’t be working here, it’s hard to develop a targeted plan for their future. We encourage leaders to start with an evaluation process that includes the most important aspects of the job and provides behavioral examples of completing those successfully. Once you know how an employee compares, you can start the conversation about the knowledge, skills, and abilities they need to develop by looking at examples of what it would require for them to take their performance up a notch. A best practice is to schedule regular touchpoints to monitor progress and encourage their growth throughout the year. That opens the door to individual development plans and succession planning. Those are key to long term employee success and retention. Comfortable with the system you have now? When’s the last time an employee shared with you that their review was impactful in a positive way? If that’s not what you’re hearing, it may be time to reevaluate your process. Want to learn more about ways to evaluate performance that can be used as a basis for developing employees? The HR Consulting team at Rose Street is ready to help!

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

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Tuesday, April 23, the Department of Labor announced the new rule for a minimum salary threshold for exempt employees. Effective July 1^st, 2024, the annual salary threshold for exempt employees will increase to $43,888. This is an increase of $8,320 from its current level of $35,568. Why is this important? The annual salary threshold is the minimum amount an employee can earn and still be classified as exempt. To be exempt from overtime eligibility, there are other requirements that still need to be met under the duties test, but this is a straightforward baseline minimum. Comfortable that your exempt employees earn more than $43,888? Hang onto your hat, the threshold will increase again on January 1^st, 2025, to $58,656. Not certain if your employees are properly classified or need to move some employees back to a nonexempt status? Let us know, we can help. Want to learn more? You can read more about the Department of Labor announcement at: https://www.dol.gov/newsroom/releases/whd/whd20240423-0

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

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When we talk to our customers' employees, we often hear two different things:

1. They would like to see changes.

2. There's too much change. We all love to hate change, but we also get bored without it. How can that be? Picture this; we don’t like potholes, but we also don’t like it when a street is closed for construction. The best organizational cultures are the ones who encourage learning for the sake of learning. As HR guru Norman Frazier told me, learning leads to small incremental changes. Major changes come when the status quo takes a serious hit. While sometimes necessary, major changes can be very disruptive. The opposite of too much change is no change. One of the worst things an organization can do is to fall into the “it’s always been done this way” trap. Want to lower your employee engagement? Just keep telling folks: “that’s not the way we do things.” What is your organization doing to encourage continuous learning and incremental change?

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

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While I always encourage folks to read my blogs, if you employ independent contractors, then this is a must read. It’s also an example of “what’s old is new again.”

On March 11^th, 2024, the Department of Labor (DOL) will be reverting to the previous rule for determining an individual’s status as an independent contractor.

What does that mean? Let’s start with the old/new rules. To evaluate whether an individual is an independent contractor, organizations must consider: (1) opportunity for profit or loss depending on managerial skill; (2) investments by the worker and the potential employer; (3) degree of permanence of the work relationship; (4) nature and degree of control; (5) extent to which the work performed is an integral part of the potential employer’s business; and (6) skill and initiative. These are the rules that have been in place for determining status prior to 2021. In 2021, the DOL amended this list to add two “core factors” – control and opportunity for profit or loss. These new additions were deemed to be more important factors than the original six criteria. The current update removes those two factors, returning the focus to the original six items in equal measure. If this is confusing, here are some simple things to consider. If all of these statements are true, then you are on your way to hiring an independent contractor: • Could they earn more or less profit if there are issues with the work? • Do they provide their own work materials/equipment? • Is this assignment for a specific project and not an ongoing relationship • Do they choose when, where, and how they do the work? • Is the work being performed not a key part of your business? Do they perform the same work for the other organizations? • Did the individual come to you with the skills to do the work? Want to learn more? You can read more detail on the DOL website Have questions? Our HR team would love to hear from you!

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

Interested in more?

Let's Talk

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

Interested in more?

When HR Goes Wrong

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

Interested in more?

How Not to Terminate an Employee

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

Interested in more?

ESTA, ESTA - Read All About It!

Should employers be evaluating their current time off policies and comparing them to the new requirements?

When should we implement these changes?

What should I be looking for in my policy?

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

Interested in more?

Michigan's Minimum Wage &Paid Medical Leave Laws - Here We Go Again!

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

Interested in more?

Employees & Substance Abuse

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

Interested in more?

Are You Evaluating Employees or Developing Them?

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

Interested in more?

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

Interested in more?

When we talk to our customers' employees, we often hear two different things:

1. They would like to see changes.

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

Interested in more?

While I always encourage folks to read my blogs, if you employ independent contractors, then this is a must read. It’s also an example of “what’s old is new again.”

On March 11th, 2024, the Department of Labor (DOL) will be reverting to the previous rule for determining an individual’s status as an independent contractor.

Kevin Brozovich

SPHR | CHIEF PEOPLE ADVISOR

Interested in more?

Michigan's Minimum Wage &
Paid Medical Leave Laws -
Here We Go Again!

On March 11^th, 2024, the Department of Labor (DOL) will be reverting to the previous rule for determining an individual’s status as an independent contractor.