2025 Michigan Business Law Update: What You Need to Know

As we enter 2025, Michigan businesses must prepare for significant legislative changes that will likely impact their operations, employees, and bottom lines. Here is a breakdown of three key laws taking effect this year and how they may affect your business:

1. Michigan’s Earned Sick Time Act

Under the Michigan Earned Sick Time Act, starting February 21^st, employees will now have expanded rights to accrue and use paid sick leave. This law aims to provide workers with the security of staying home when sick without sacrificing their income. For businesses, this means updating leave policies to ensure compliance and implementing processes to track and manage sick time accrual. Employers should review their employee handbooks and consult with legal professionals to ensure their policies meet the new requirements.

2. Minimum Wage Increase

Effective this year, Michigan’s minimum wage will increase to $12.48 per hour. For tipped employees, the minimum hourly wage will rise from $3.93 to $4.01. The new rate will increase labor costs for many businesses, especially those in industries with significant hourly workforces. Employers should plan for these changes by evaluating their budgets, assessing the potential impact on pricing, and considering strategies to balance the increased costs while maintaining competitiveness.

3. Senate Bill 40: Unemployment Benefits Extension

Effective April 1, Senate Bill 40 will extend the duration of unemployment benefits available to Michigan residents from 20 weeks to 26 weeks. Employers should stay informed about the application and administration of unemployment benefits to better understand their obligations and any potential impact on their workforce planning.

Preparing Your Business for Compliance 

Navigating these legislative changes can feel overwhelming, but proactive steps can help your business stay compliant and thrive:

• Educate Yourself: Familiarize yourself with the specifics of each law and how they apply to your business.
• Review Policies: Update employee handbooks, payroll systems, and internal procedures to reflect the new requirements.
• Consult Professionals: Seek guidance to ensure compliance and to address any unique challenges your business may face.
• Communicate with Employees: Keep your workforce informed about the changes and how they may affect their rights and responsibilities.

At Mavacy, we’re here to help businesses like yours navigate these changes. Our team is ready to provide tailored guidance and support to ensure your business not only complies with the new laws but continues to thrive. Contact us today to schedule a consultation.