ESTA’s Implementation Date & FAQs

As reported in our August 29, 2024 School Law Notes, the Michigan Supreme Court recently declared the Michigan Paid Medical Leave Act (PMLA) void and ruled that the Employee Sick Time Act (ESTA) be implemented in its place effective February 21, 2025. Mothering Justice v Attorney General, MSC Docket No. 165325 (July 31, 2024). As schools prepare to implement the ESTA, below are highlights from FAQs issued by the Michigan Department of Labor and Economic Opportunity (LEO), the agency that will enforce the ESTA.

The complete list of FAQs can be found here.

Frequently Asked Questions

• What employers are covered by the Act?

Subject to limited exceptions, all Michigan employers are covered. ESTA applies to all public school employers.

• What employees are eligible to receive earned sick time?

Employees who provide services to an employer are eligible to receive earned sick time. According to LEO, an economic realities test used by courts should be used to ascertain employee status. Generally, publicly elected officials, including school board members, are not deemed employees under the ESTA, unless expressly classified as employees by the school.

• When does an eligible employee begin to accrue earned sick time?

Accrual begins either on February 21, 2025, or upon commencement of the employee’s employment, whichever is later.

• When is earned sick time available for use?

Employers may require new employees to wait until the 90th calendar day following the first day of employment to use their accrued earned sick time. An employee reemployed within a six-month period is considered continuously employed under ESTA, inclusive of the 90-day waiting period. Otherwise, em­ployees may use earned sick time as it accrues, independent of the pay period. Under ESTA, employees accrue one hour of sick time for every 30 paid hours worked.

• For what reasons can an eligible employee use earned sick time?

An eligible employee may use earned sick time for the following reasons:

• for the employee’s mental or physical illness, injury, or health condition; medical diagnosis, care, or treatment of the employee’s mental or physical illness, injury, or health condition; or preventative medical care for the employee;
• for the employee’s family member’s mental or physical illness, injury, or health condition; employee’s family member’s medical diagnosis, care, or treatment, mental or physical illness, injury, or health condition; or preventative medical care for an employee’s family member;
• if the employee or the employee’s family member is a victim of domestic violence or sexual assault, for medical care or psychological or other counseling for physical or psychological injury or disability; to obtain services from a victim services organization; to relocate due to domestic violence or sexual assault; to obtain legal services; or to participate in any civil or criminal proceedings related to or resulting from the domestic violence or sexual assault;
• for meetings at a child’s school or place of care related to the child’s health or disability, or the effects of domestic violence or sexual assault on the child; or
• for closure of the employee’s place of business by order of a public official due to a public health emergency; for an employee’s need to care for a child whose school or place of care has been closed by order of a public official due to a public health emergency; or when it has been determined by the health authorities having jurisdiction or by a health care provider that the employee’s or employee’s family member’s presence in the community would jeopardize the health of others because of the employee’s or family member’s exposure to a communicable disease, whether or not the employee or family member has actually contracted the communicable disease.

• What effect does ESTA have on collective bargaining agreements on or after Febru­ary 21, 2025?

ESTA states that it does not apply to employees covered by a collective bargaining agreement (CBA) until the CBA’s expiration date.

The LEO FAQs, however, provide that if a CBA includes sick leave provisions, those terms remain valid until the CBA expires or is renegotiated, even if the benefits are less than those required under ESTA. Conversely, if a CBA is completely silent on sick leave, employees will be covered by ESTA and will begin accruing sick leave benefits starting February 21, 2025.

Moving Forward

School officials should familiarize themselves with ESTA requirements and begin preparing for its implementation on February 21, 2025. House Bill 4002 of 2025 was introduced on January 9, 2025. If this bill is passed and signed into law, it would amend the ESTA. We will monitor this bill and update retainer clients on its status.