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What’s happening: A bipartisan group of lawmakers in the Michigan House came together today in support of commonsense changes to the onerous Earned Sick Time Act (ESTA) and minimum wage law, both of which are slated to go into effect on Feb. 21.
Why it matters: With just 29 days left before these sweeping laws take effect, the House voted to send House Bills 4001 (63-41) and 4002 (67-38) to the Michigan Senate for consideration.
- The MI Chamber has spent the last six months highlighting the unique challenges organizations of all sizes face under ESTA’s one-size-fits-all mandates and the difficulty businesses, especially those relying on tipped workers, will have in implementing the minimum wage changes. The bills passed in the Michigan House address the majority of those challenges and make the laws more workable for employers and employees alike.
Remember: ESTA impacts ALL organizations that employ one or more employees: this includes traditional businesses, nonprofits, local governments, schools, and more. It will require most organizations to make significant changes to their employee benefits – even those with generous paid time off policies today!
What happens next: The fate of these issues now rests in the Senate’s hands. Without changes to the laws as written, the decisions ahead for organizations are difficult, which is why lawmakers must step in to soften the impact.
- The Senate can consider the bills as written or revise (amend) them. They can also consider their own versions of the bills, such as Senate Bills 15 (ESTA) and 8 (minimum wage). However, action by the Senate is not guaranteed. In fact, we expect an uphill battle, so it is imperative that business leaders continue to make their voices heard. Swift action is needed to avoid a situation where organizations have to make two disruptive changes to their employee benefits in 2025.
- It remains possible, but not guaranteed, that lawmakers could push the effective date of these laws out beyond Feb. 21. Michigan employers should continue to prepare for these laws to take effect as written on Feb. 21 but continue to monitor whether statutory changes are agreed upon and enacted.
Go deeper:
Contact Arthur Havlicek with questions or to get involved.
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