Michigan recently enacted two pieces of legislation, amending both the paid sick leave and minimum wage rules.

Under House Bill 4002, all businesses that employ at least one individual are required to provide paid sick leave. Small businesses (10 employees or fewer) must provide a minimum of 40 hours in a year, while employers with 11 employees or more must provide a minimum of 72 hours in a year.

The accrual rate is 1 hour of paid sick leave for every 30 hours worked.

Employers with no employees on or prior to February 21, 2022, must comply with the new paid sick leave law three years after hiring the first employee.

Under Senate Bill 8, the state minimum wage increased to $12.48 per hour as of February 21, 2025. It is also scheduled to increase again on February 21, 2026, and February 21, 2027, and again annually for inflation.

For tipped employees, the minimum cash wage increased to 48% of the general minimum wage. The tip credit was scheduled to be fully phased out by February 21, 2029, but this bill nullifies that plan. Instead, it will continue to increase until it reaches 50% of the statewide minimum wage rate (by January 1, 2031).

This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.