Just as the Michigan Earned Sick Time Act was set to go into effect on February 21, 2025, the Michigan Legislature came to an agreement to revise the Act. The Bill (HB 4002) was promptly signed by Governor Whitmer and became effective February 21. The Act still provides guarantees to Michigan workers for paid sick time while also providing employers with improved flexibility in implementing their paid sick time policies. There are, however, several changes in the revised Act compared to its prior iteration of which employers should be aware.

One notable change is to the definition of covered “employee,” which now includes several exclusions. Specifically, the following individuals are now expressly excluded from the Act’s coverage:

• an individual employed by the federal government;
• an individual who works under a policy where both of the following conditions are met: (a) the policy allows the individual to schedule the individual’s own working hours; and (B) the policy prohibits the employer from taking an adverse employment action if the individual does not schedule a minimum number of hours;
• an unpaid trainee or intern; and
• an individual employed under the youth employment standards act.

The definition of covered “employer” was also revised and no longer includes in its definition the term “nonprofit agency.” However, nonprofit agencies are not expressly excluded from the definition, creating an ambiguity as to whether they are subject to the Act.

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