The Michigan Senate OK'd the state's sick time policy Thursday night, shortly before the Feb. 21 deadline.

The Democratic-controlled legislature voted 26-10 in favor of House Bill 4002, which modifies the Earned Sick Time Act. The bill allows small businesses (10 or fewer employees) to accrue no more than 40 hours of paid sick time and 32 hours of unpaid sick time, while businesses with more than 10 workers can accrue up to 72 hours of paid sick time. It does not require small businesses to provide paid earned sick time until Oct. 1.

It will now be sent to Gov. Gretchen Whitmer's desk after being returned to the GOP-controlled House, which passed it with an 81-29 vote.

"Emergencies and illnesses are a part of life, and our core mission with this legislation is to help Michiganders sleep at night knowing that there is a reasonable amount of cushion for them when the unpredictable happens," Senate Majority Leader Winnie Brinks (D-Grand Rapids) said in a statement. "This bill is informed by the people of Michigan and negotiated in good faith across bipartisan lines, and in years to come, other states will be modeling their own laws on what we passed today." 

HB 4002 is tied to the revised Improved Workforce Opportunity Wage Act that was recently passed by both the Senate and the House. The law allows a minimum hourly wage increase to $12.48 beginning Friday and increases annually to $15 by 2027. The law also sets a 38% increase for tipped workers beginning Friday until it reaches 50% by 2030.

Lawmakers had until Feb. 21 to vote on both bills before the original laws restored by the Michigan Supreme Court became effective.

In 2024, the high court ruled 4-3 in favor of reinstating major changes to the minimum wage and sick leave laws after concluding that a move by Republican lawmakers in 2018 called "adopt and amend" was unconstitutional. 

The original sick time law labeled small businesses as having fewer than 50 employees.