Fix Earned Sick Time Act, say MI food, farming and rural business orgs

A letter sent to members of the Michigan Legislature Tuesday from 15 farming and agribusiness organizations calls for action to address the negative consequences of impending Earned Sick Time Act (ESTA) changes for family farms and rural employers.

“It is important to understand that rural, Main Street businesses and Michigan farms will be among the many other sectors of Michigan’s economy harmed if the Legislature allows these changes to enter into force as written,” the groups wrote to legislative leaders. Read the full letter here.

With no further action from the Legislature, an array of changes to the ESTA take effect on Feb. 25, 2025. These changes will greatly reduce employers’ options for offering paid leave to employees, creating a “one size fits all” approach. It contains no exemptions for even the smallest employers; no flexibility for seasonal and temporary workers often employed part-time at rural businesses; and no recognition of the unique factors, such as animal care and crop movement logistics, that impact agricultural businesses.

“Rural businesses compete intensely to attract, hire and retain workers through existing competitive benefits and compensation packages, and upcoming ESTA changes will hamstring those efforts,” said Chuck Lippstreu, president of the Michigan Agri-Business Association (MABA). 

“Michigan’s rural employers echo the calls coming from every corner of our state’s economy for legislators to make common-sense changes to this policy before it takes effect.”

“Michigan farms are proud to lead the way in delivering jobs and economic opportunity in rural communities across Michigan, and we are deeply concerned this new policy will harm both employers and employees,” added Rob Anderson, manager of government relations for Michigan Farm Bureau. 

“Common-sense action by the Michigan Legislature will ensure that when these changes go into effect next year, rural employers and employees retain appropriate flexibility, strong compensation packages and the ability to keep growing the rural economy.”

The letter echoes calls from other sectors for common-sense legislative action that restores certainty and a workable framework for businesses, prior to the ESTA changes entering effect. The farming and rural business groups asked that the Michigan Legislature make the following changes:

• Restore an exemption for small businesses up to 50 employees and family farms, and deliver an exemption for seasonal, part-time, youth and temporary workers.
• Covered employers should accrue and permit the usage of leave in half-day increments. Many farms and small rural employers do not have systems in place to work with smaller increments.
• Require employees to provide reasonable pre-shift notice of intent to use leave, addressing the potential for employers to face multiple days of “no-call, no-show” absence by employees. Again, this has the potential to greatly impact food and agricultural production operations.
• Simplify leave accrual by allowing employers to front-load it each year, rather than accruing it on a rolling basis.
• Allow employers to maintain one overall leave category if they so choose, to simplify leave accrual accounting.
• Maintain oversight of complaints and violations with state government, rather than allowing employees to file direct legal claims related to the ESTA.

The agricultural organizations noted their letter adds to calls from many other sectors of Michigan’s economy for legislators to act on this important issue, as it will impact businesses in virtually every corner of our state.