ESTA, ESTA - Read All About It!

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!