When the Michigan Supreme Court issued its landmark July 2024 verdict in Mothering Justice v. Attorney General, much of the public debate centered on the state minimum wage. Yet for human resources directors, payroll administrators, and small business owners, the ruling’s most transformative and immediate operational impact lies in the complete restoration of the Earned Sick Time Act (ESTA).

For six years, Michigan businesses operated under the significantly scaled-back Paid Medical Leave Act (Public Act 369 of 2018), which exempted all businesses with fewer than 50 employees and excluded part-time, temporary, and seasonal workers.

The Supreme Court wiped that statute off the books, declaring the 2018 legislative amendments unconstitutional. In its place, the court reinstated the comprehensive voter-initiated ESTA with an effective enforcement date beginning in 2025 and fully mature in 2026.

Here is the definitive legal breakdown of how the restored Earned Sick Time Act functions, which employers are covered, how leave accrues, and how to safeguard your enterprise from severe administrative and civil liabilities.

---

---

1. PMLA vs. ESTA: What Changed Overnight?

The transition from the 2018 Paid Medical Leave Act (PMLA) to the restored Earned Sick Time Act (ESTA) represents a total overhaul of Michigan employment standards:

Statutory Provision	Former Law (PMLA - 2018)	Restored Law (ESTA - 2025/2026)
Employer Size Exemption	Businesses with < 50 employees completely exempt	Zero business size exemptions (applies to 1 employee and up)
Covered Employees	Full-time only (25+ hrs/wk average); excluded part-time/seasonal	All employees (full-time, part-time, per-diem, and seasonal)
Accrual Rate	1 hour per 35 hours worked	1 hour per 30 hours worked
Annual Accrual Cap	40 hours maximum per benefit year	72 hours maximum (10+ employees: 72 paid; <10 employees: 40 paid + 32 unpaid)
Doctor’s Note Rules	Employer’s standard internal policy	Forbidden for absences under 3 consecutive days; employer must pay doctor fees
Enforcement Mechanism	Administrative complaints via LEO only	Administrative complaints PLUS private civil lawsuits in circuit court
Statutory Damages	Back pay only	Back pay, liquidated damages, reinstatement, and attorney fees

---

2. Accrual Rates, Carryover & Small Business Tiers

Under Section 3 of ESTA, sick leave accrual begins immediately upon the first date of employment:

Accrual Formula

Employees accrue paid sick time at the statutory rate of 1 hour of earned sick time for every 30 hours actually worked. Employers are permitted to frontload the full 72 hours (or 40 hours for small employers) at the start of the benefit year to avoid tracking rolling fractional accruals.

The Small Business Distinction (Under 10 Employees)

ESTA establishes a two-tiered statutory framework based on employee headcount: 1. Small Employers (Fewer than 10 employees): * Must permit employees to accrue and use up to 40 hours of paid earned sick time per year. * In addition, employees must be permitted to accrue and use up to 32 hours of unpaid earned sick time per year (totaling 72 hours of protected leave). 2. Standard Employers (10 or more employees): * Must permit employees to accrue and use up to 72 hours of paid earned sick time per year.

Carryover Rules

Employees are legally entitled to carry over up to 72 hours of unused earned sick time from one benefit year into the next. However, employers are not required to permit an employee to use more than 72 hours of paid leave in a single benefit year if the employer frontloads or maintains annual caps. Furthermore, Michigan law does not require an employer to cash out unused sick time upon an employee’s termination, resignation, or retirement.

---

3. Approved Uses of Earned Sick Time

Employees may utilize accrued ESTA hours for an expansive array of personal and family health reasons:

1. Personal Health: Mental or physical illness, injury, or health condition; medical diagnosis, care, or treatment; or preventative medical and dental appointments.
2. Family Member Care: Caring for a family member with an illness, injury, or health appointment. ESTA defines “family member” broadly to include biological, adopted, foster, and step-children, parents, spouses, domestic partners, grandparents, grandchildren, and siblings.
3. Public Health Emergencies: Closure of the employee’s primary workplace or child’s school/daycare by order of a public health official due to a communicable disease outbreak.
4. Domestic Violence & Sexual Assault: Seeking medical attention, psychological counseling, legal services, relocation, or participating in legal proceedings related to domestic violence or sexual assault affecting the employee or their family member.

---

4. Medical Notes & Documentation Restrictions

One of the most litigated sections of ESTA is employer verification:

• The Three-Day Threshold: An employer cannot require medical documentation or a physician’s certification unless the employee is absent for more than three consecutive workdays. Requesting a doctor’s note for a one- or two-day flu absence violates state statute.
• Employer Reimburses Costs: If an employee is absent for four or more consecutive days and the employer requests a doctor’s note, Section 4(5) of ESTA mandates that the employer must pay all out-of-pocket expenses incurred by the employee in obtaining that documentation (including insurance copays, clinic facility fees, and transportation).

---

5. Anti-Retaliation & Civil Liability Risks

ESTA contains aggressive anti-retaliation provisions backed by severe financial penalties:

• Presumption of Retaliation: If an employer takes adverse action against an employee (discipline, demotion, termination, or reduction in scheduled hours) within 90 days of the employee requesting or utilizing earned sick time, the law creates a statutory presumption that the action was retaliatory. The burden of proof shifts entirely to the employer to prove legitimate business justification.
• Private Lawsuits: Aggrieved workers can bypass administrative agencies and file a civil lawsuit directly in Michigan Circuit Court. Courts can award:
• Full back wages and lost benefits.
• Reinstatement of employment.
• Mandatory liquidated damages equal to the back pay award.
• Mandatory payment of the plaintiff’s attorney fees and legal costs.

---

6. Action Plan for Michigan Business Owners

To insulate your business against ESTA non-compliance penalties, execute these operational steps:

1. Audit PTO Policies: If your company currently provides combined “Paid Time Off” (PTO), verify that the policy provides at least 72 hours annually, accrues at 1:30, covers part-time staff, and does not require medical notes for short absences.
2. Integrate Timekeeping Accruals: Configure digital payroll systems (e.g., ADP, Paychex, Gusto) to track the 1:30 accrual ratio across all hourly and seasonal personnel.
3. Train Frontline Managers: Supervisors must understand that disciplining an employee for calling in sick or asking for a doctor’s note for a 1-day absence exposes the entire corporation to statutory liability.

---

Frequently Asked Questions (FAQ)

What is the Michigan Earned Sick Time Act (ESTA)?

The Earned Sick Time Act (ESTA) is Michigan’s restored statutory sick leave law, reinstated by the Michigan Supreme Court in Mothering Justice v. Attorney General. ESTA replaced the narrower 2018 Paid Medical Leave Act (PMLA) and requires nearly all Michigan employers—regardless of size—to provide accrued paid sick leave to both full-time and part-time workers.

How much paid sick time must Michigan employers provide in 2026?

Under ESTA, employers with 10 or more employees must provide up to 72 hours of paid sick leave per year (accruing at 1 hour for every 30 hours worked). Employers with fewer than 10 employees must provide at least 40 hours of paid sick leave plus up to 32 hours of additional unpaid sick leave per year.

Are part-time and seasonal employees entitled to paid sick leave in Michigan?

Yes. Unlike the former PMLA which exempted part-time, temporary, and seasonal employees working fewer than 25 hours per week, ESTA covers virtually all employees in Michigan, including part-time, seasonal, and temporary personnel.

Can a Michigan employer demand a doctor’s note for taking sick leave?

Under ESTA, employers may only require reasonable medical documentation if the employee’s absence lasts more than three consecutive workdays. Furthermore, if the employer requests documentation, the employer is legally obligated to pay any out-of-pocket costs or copays incurred by the employee to obtain that note.

Can employees sue employers directly for ESTA violations?

Yes. ESTA explicitly creates a private right of action permitting employees to file a civil lawsuit against employers in Michigan circuit courts within three years of an alleged violation. Penalties include back pay, liquidated damages, reinstatement, and mandatory attorney fees.