Many employers have moved away from traditional paid time off (PTO) policies that provide a set number of days for vacation, sickness, and personal purposes, to PTO quotas that allow employees to use their vacation as they see fit. Some employers even offer flexible PTO policies that provide unlimited PTO.
Although many employers take a broader approach to paid leave, many states require employers to provide their employees with a certain number of paid sick leave hours. To date, nearly 20 states have mandatory sick leave laws that require employers to allow their employees to advance or accrue a certain number of sick leave hours each year.
In Michigan, a recent Supreme Court ruling reinstated the Earned Sick Time Act, which requires employers with 10 or more employees to accrue and use up to 72 hours of paid sick leave per year for all of their Michigan employees—significantly more than most states, which require only 40 hours. This law is set to take effect on February 21, 2025.
Many Michigan employers that offer PTO accounts or flexible PTO policies may wonder if their policy is sufficient or if they need to provide a separate sick time bank. An employer complies with this law if its paid leave policy allows employees to 1) accrue at least one hour of sick leave for every 30 hours worked and 2) take at least 72 hours of PTO for sick leave purposes provided for by law, including to care for themselves or their family members, during certain public health emergencies, and for certain purposes related to domestic violence, sexual assault, or stalking.
Employers whose policies may not be compliant should be sure to make updates before they go into effect.
