ESTA and IWOWA are OOO

There are so many regulations on small businesses it’s enough to make anyone sick. The Earned Sick Time Act (ESTA) and the Improved Workforce Opportunity Wage Act (IWOWA) passed by the Michigan legislature are some of these regulations.  These laws were scheduled to go into effect February 19, 2023. Fortunately, these laws are OOO (Out Of Office) until further notice.

Under ESTA, employers who employ less than 10 employees were required to provide 40 hours of paid sick time and 32 hours of unpaid earned sick time per year per employee.  Employers who employ more than 10 employees were required to provide 72 hours of paid earned sick time per year per employee.

IWOWA would require employers at all sizes to increase the non-tipped minimum wage to $13.03 per hour for 2023. Why does this legislation have “WOW” in the middle of its acronym? Government regulations will never give you a WOW feeling.

If you were worried sick about these changes, you can now rest in peace. The Michigan Court of Appeals issued an opinion on January 27, 2023, that cancels the Earned Sick Time Act (ESTA) and Workforce Opportunity Wage Act (IWOWA) from going into effect. This decision can be appealed, although it is unlikely to be ruled on for a while.

With so many prospective legislative changes, employers must maintain a high level of attention on how new policies can affect their business. We at Innovative Law Group will keep you updated on important changes in the legal landscape while maintaining a good sense of humor and a positive attitude. If you have additional questions, contact Katherine Pereira katherine@innovative.lawyer