2025 Updated Version

Michigan employee handbook

Table of Contents

Michigan paid sick leave law

Michigan-specific policies to include

Federal handbook policies

Additional content and policies to include

Michigan labor law posters

Michigan handbook policies

Michigan employee handbook overview

When creating an employee handbook for Michigan, it’s essential to incorporate policies that are specific to the state and federal guidelines. Regardless of the number of employees in Michigan or elsewhere, it’s necessary to provide a Michigan-specific handbook that outlines the policies and rights that employees are entitled to under state law.

Michigan Paid Sick Leave Policy - 2025 Update
The Michigan Earned Sick Time Act is effective Feb. 21, 2025. All employers will need to provide employees with paid sick leave as well as notice in their employee handbook. The updated policy is included.

PAID SICK LEAVE LAW

Earned Sick Time Act

The Earned Sick Time Act (ESTA) is a paid sick leave policy. It becomes effective on February 21, 2025, and applies to all employees working in the state, including remote employees who live in Michigan. The new policy replaces an older sick leave policy (the Michigan Paid Medical Leave Act) that only applied to companies with 50 or more employees.

Here are a few key points:

All employers must provide up to 72 hours of sick leave per year.
Small businesses (with fewer than 10 employees) must provide 40 hours of paid sick leave and 32 hours of unpaid sick leave.
Businesses with more than 10 employees must provide 72 hours of paid sick leave.
Eligible employees accrue 1 hour of paid medical leave for every 30 hours worked.
Unused sick time is carried over to the next year, however, employers can limit the use of sick leave to 72 hours per year.
Sick leave can be used to care for themselves, or family members for multiple qualifying reasons.

Michigan Paid Sick Leave FAQ

Who is eligible to receive paid sick leave?: All employees in the state of Michigan, including remote workers who live in Michigan. Employees of the US government are excluded from coverage.
What can Michigan employees use sick leave for?: Employees can use their paid medical leave for their own or a family member's mental or physical health condition, medical diagnosis, care, or treatment, preventive medical care, and for certain situations related to domestic violence or sexual assault. Paid leave can also be used for attending school meetings related to a child's health, or disability, as well as for public health emergencies
Is accrued leave paid out upon termination?: No, unused leave is not paid out upon termination unless the employer has stated otherwise.
Can an employer “frontload” paid sick leave at the beginning of the year?: Yes, employers can choose to provide all leave at the beginning of the leave year.
What if an employer already has a leave policy in place?: Companies that already have an existing PTO policy in place may be able to meet the requirements of the Earned Sick Time Act if the accrual of leave, usage of leave, and tracking of leave, as well as other provisions of the law, are fully satisfied.
Do employers have to provide written notice about the ESTA requirements?: Yes, employers must provide written notice of the employee’s rights regarding the ESTA.
What are the penalties for non-compliance with the Michigan ESTA?: Employers who fail to provide earned sick time are subject to a $1,000 fine as well as civil penalties.

What should be included in a Michigan employee handbook?

Every handbook should include Federal, State, and (if applicable) City-specific policies. Below are Michigan-specific policies that should be included in your handbook.

Michigan Sick Leave Policy: Michigan employers with 50 or more employees nationwide are required to provide employees with paid sick leave.

Michigan Final Paycheck Policy: Employers are required to provide the employee with their final paycheck in accordance with the timeline of when they would receive it had they remained employed.

Michigan Crime Leave Policy: Employers are required to provide unpaid leave to employees who are crime victims or representatives of a crime victim.

Michigan Emergency Response Leave Policy: Certain employees who are certified by the Red Cross may be provided with leave to respond to emergencies.

Michigan Civil Air Patrol Leave Policy: Employers are required to provide leave to employees in Civil Air Patrol when required by the governor or president.

Michigan Jury Duty Leave: When summoned to jury duty, employers cannot prohibit employees from serving.

Michigan Social Security Privacy Policy: Employers in Michigan must comply with specific requirements regarding the handling and privacy of Social Security numbers.

Michigan Whistleblower Policy: Employees are protected from retaliation by employers when they report violations of a law, rule, or regulation as a whistleblower.

Create your Michigan employee handbook now

Federal Policies

Don’t forget about Federal Policies

There are policies required by federal law in all 50 states, and so they must be included in your handbook no matter what state your employees are based in. Some of the most important policies are outlined here, however, all federal policies should be included in your handbook.

Equal Employment and Anti-Discrimination Policy
Sexual Harassment Policy
Family Medical Leave Act (FMLA) Policy (required for companies with 50 or more employees)
Military Service Leave
Get the full list of federal policies from the free handbook template builder

Additional Policies

Other Policies to Include in Your Michigan Employee Handbook

Workplace Violence
Employee Conduct and Work Rules
Conflict of Interest and Business Ethics
Receipt of Non-Harassment Policy
Receipt of Sexual Harassment Policy
Health and Safety
Confidential Company Information
Insurance
Workers’s Compensation
Open Door Policy
Equipment and Property Including Intellectual Property
Sick Days
No Solicitation / No Distribution
Benefits Overview
Use of Communication and Computer Systems
Punctuality and Attendance
Holidays
Vacation Benefits
Benefits
Working Schedule
Employment Records
Inspections
Smoking
Pay Day
Overtime
Timekeeping
Employee Categories
Performance Reviews
Lactation Breaks
Direct Deposit
Company Vehicles
Personal and Company Owned Communication Devices
Personal Visitors and Telephone Calls
Hiring Relatives
Business Expense Reimbursement
Social Media Policy
Introductory Period
General Handbook Acknowledgment
References

Employee handbook requirements by state

Click on a state to learn more about policies and recommendations.

Poster Requirements

Michigan labor law posters

Understanding labor law poster requirements can be a bit like trying to decode a complex puzzle. You need to comply with both state and federal requirements.

Why Should I Care About Displaying Posters?

You might be wondering why it's so important to display these posters in the first place. State and Federal laws mandate that employers must have up-to-date labor law posters conspicuously displayed for their employees. Failing to do so not only results in steep fines (up to $35,000 in federal fines and additional state fines) but also exposes you to real liability.

Consider this scenario: if an employee decides to bring a lawsuit against your company, and you don't have the required posters or they are outdated, you could face even more significant problems:

Statute of Limitations: Normally, there's a limited window within which an employee can file a lawsuit against you. However, if you didn't inform your employees of their rights through proper poster display, a court might decide that the statute of limitations doesn't apply.

Operating in Bad Faith: Courts may determine that you were intentionally withholding information from your employees, which could lead to a finding that you were operating in bad faith. This can substantially increase your liability.

What Are the Requirements for Displaying Labor Law Posters?

Labor law posters must be displayed at every physical location where you have employees, and they need to be conspicuously displayed for all to see.

If you have a hybrid workplace with both in-person and remote employees, you'll need physical posters at your facilities and electronic distribution to your off-site workers.
For fully remote companies, you can distribute posters electronically by sharing a permanent link to the appropriate posters.
Some posters also need to be visible to job applicants, such as FMLA, Equal Employment Opportunity, and Employee Polygraph Protection posters, as per the guidance provided by the Department of Labor.

What Labor Law Posters Do I Need to Display?

You'll need both Federal and State labor law posters for each state where you have employees. The good news is that all the posters you need are provided for free by the federal government and state departments of labor. You've probably seen those convenient "all-in-one" laminated posters, but if you prefer, everything you need is also available as a free, printable document from the Michigan Department of Labor.

Federal Poster Requirements

Determining which federal posters you're required to display can be influenced by various factors, including your industry, the size of your company, benefits you provide and union affiliation.

The good news is that there's a handy tool to help you understand precisely which federal posters your company needs. You can use the Federal Poster Advisor tool to determine your specific federal poster requirements.

Michigan Labor Law Poster Requirements

You can refer to the Michigan Department of Labor for free, printable posters.

Download Michigan labor law posters here

Let’s build this thing!

What’s included with the handbook builder

Creating a new handbook only takes a few minutes. And it’s easy. You can get started by answering a few interactive questions about your company. A few examples:

How many employees do you have?
Do you have employees in multiple states?
Do you have an introductory period for new employees?
Do you offer paid holidays?
What is your payroll schedule?

Create your Michigan handbook

Company culture

Communicating your company culture

In all businesses, building a strong company culture can be essential to boosting morale and aligning employees. Arguably, it is even more key for small businesses. With a small team, the impact of a strong culture is made more apparent. Here are some important things to remember when building a strong company culture.

Evaluate Your Current Culture

Since company culture is primarily determined at the top, here are some key questions to ask your leadership team to evaluate where your culture currently stands:

Are we open about how things work at our company?
Do our employees know what is expected of them?
Do we value our employee’s feedback?
How do we demonstrate that our employees are valued?
What are our company values?
Do we clearly express these values?

Set Your Goals

From your answers to the previous questions, pinpoint what is lacking and make goals to improve on those areas. This could mean having clearer communication for employee expectations, defining company values, or creating monthly team-building activities to build morale.

Respecting Employee’s Work-Life Balance

A large part of communicating that your company values its employees is demonstrating respect for their lives outside of work. A strong employee handbook can allow this to be done in a clear, effective way. Company leaders should detail expectations, but also be open about their own work-life balance to build transparency. Trust is key in a great company, and when leaders show genuine empathy for employee responsibilities at home, a foundation for transparency and cooperation is built.

The Link Between Culture and Happiness

Many surveys and analyses of employee feedback indicate that the majority of employees care as much about the culture of the company they work for as their salary. In small companies, culture is frequently undervalued. In order to reduce turnovers and increase recruitment, companies need to understand that there is a link between strong culture and the one important question employees think about regularly: “Am I happy working here?”.

Understanding and Communicating Your Company’s Culture

In order to effectively communicate your company’s culture, you need to understand it. By asking your team the right questions, setting goals, and valuing employees, you can be sure to be on the right track.

Communicating this culture is an essential next step toward aligning with your employees. Not every culture is a good fit for every employee, and being honest upfront is important for making sure you are hiring employees best aligned not only with the skills a company requires, but the culture of the workplace. Research shows that when looking for a job, 77% of people polled would consider a company’s culture and work atmosphere before applying. By clearly communicating your company culture up front, you can ensure that more candidates who align with your team values will apply for a position.

Creating an editable handbook