On Feb. 5, the Michigan Senate Regulatory Affairs Committee held its first hearing on SB 15, which modifies some of the Earned Sick Time Act (ESTA)’s dangerous issues for businesses across Michigan.
The committee took testimony mostly from the opposition on SB 15 but did not take a final vote on the legislation. Instead, the committee tabled the issue until Feb. 12, when they are expected to hear testimony from the Detroit Regional Chamber and then vote the bill out.
With only fifteen days left until the Feb. 21 effective date, failure to reach an agreement on protecting every single employer across the state from the most far-reaching paid time off laws in the country is making businesses question if economic security is still a priority in Lansing.
The Chamber compiled questions from a recent webinar and presented them to Senators. Senators also quoted from the Chamber’s letter and posed member questions to committee witnesses.
There are five critical changes listed in the letter that the Chamber urges all legislators to consider when this topic reaches final negotiations:
- Exempt small businesses and certain classifications of workers.
- Allow the frontloading of time off, easing tracking and carry-over requirements.
- Allow existing PTO to count as sick time and get rid of the “two banks” system.
- Eliminate a one-size-fits-all approach to advanced notices and increments of how time can be used.
- Leave enforcement and penalties to the state while eliminating carveouts that will result in frivolous lawsuits.
The Chamber is committed to working with legislators in good faith. The business community continues to encourage Senators to pass HB 4002 as is or make drastic changes to SB 15 that are a closer reflection of our priorities.
Thanks to all the feedback from members related to ESTA, many legislators understand the significant threats that this law presents. However, the clock is ticking, and Michigan’s employers and employees cannot afford to let politics get in the way of certainty.