Look, we know HR isn’t sexy. It’s that thing most business owners would rather ignore until we absolutely can’t anymore. Well, guess what? That time is now, thanks to Michigan’s new Earned Sick Time Act (ESTA). Employers have until February 21 to get their shit together.
We recently sat down with Lisa Cooper of Cooper People Group and certified HR badass, on our Happy Hour Hustle podcast to break down what business owners need to know about the Earned Sick Time Act (ESTA). And because we know you’re probably already overwhelmed, we’re going to cut through the noise and give you the important stuff.
What is ESTA?
At its core, ESTA requires employers to provide one hour of paid sick leave for every 30 hours worked. Sounds simple enough, right? Wrong. The devil’s in the details, and there are a lot of them.
While many businesses already offer paid time off (PTO) that exceeds ESTA’s requirements, the law brings new complications around tracking, reporting, and compliance. And the kicker? The way it’s written assumes employers are guilty until proven innocent. Because obviously, every business owner wakes up thinking about how to screw over their employees today.
Why Should You Care?
Let’s talk penalties, because they’re not messing around:
- Back pay and benefits reinstatement
- Front pay and benefits
- Double liquidated damages
- Attorney fees (yours AND the employee’s)
Translation: Non-compliance could absolutely devastate a small business. And unlike some other regulations where you can just pay a fine and move on, this one could seriously hurt.
What Should You Do Right Now?
According to Lisa (and trust us, she knows her stuff), here are your immediate action items:
- Get your policy in order. Even with potential legislative changes coming, you need a foundation to work from.
- Talk to your payroll provider. Don’t wait until February 19th to figure out how you’re going to track and report this stuff.
- Plan your communication strategy:
- Train your leaders on what qualifies for sick time
- Update your offer letters
- Get those required posters ready
- Figure out how you’re rolling this out to your team
The Bigger Picture
Here’s the thing: As business owners, we’re constantly juggling a million balls in the air. ESTA, Corporate Transparency Act, payroll, IT – it’s enough to make anyone’s head spin. And while we’d all love to be experts in everything, that’s not realistic (or smart).
This is why having the right partners matters. Whether it’s an HR firm like Cooper People Group, a communications agency like yours truly, or any other expert in their field, sometimes the smartest business decision is knowing when to call in the professionals.
Next Steps
If you’re feeling overwhelmed, reach out to Cooper People Group. They offer everything from quick ESTA compliance checks to full HR assessments and ongoing support. You can find them at cooperpg.com or reach Lisa directly at [email protected].
And remember, you’ve got until February 21st to get compliant. The clock is ticking, folks.
Want to hear the full conversation? Check out the latest episode of Happy Hour Hustle below or wherever you get your podcasts. And yes, we discuss our favorite drinks too, because sometimes HR talks go down better with a Colorado Bulldog (ask Lisa about it) or wine with ice (don’t judge us).
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