Michigan employers should make sure their paid time off and sick leave policies align with the Michigan Earned Sick Time Act (ESTA). The law took effect February 21, 2025, with amendments under Public Act 2 of 2025, and significantly expanded paid sick leave requirements for employers across the state. In general, ESTA applies to Michigan employers with one or more employees, although certain workers are exempt and special compliance rules apply to qualifying small businesses.

Under ESTA, eligible employees generally accrue one hour of paid sick time for every 30 hours worked. Employers with more than 10 employees may limit employees to using 72 hours of earned sick time during a 12-month period, while qualifying small businesses with 10 or fewer employees may limit use to 40 hours. Employers may also choose to frontload the required sick time rather than use the traditional accrual method. Existing PTO programs can satisfy the law as long as they provide benefits that meet or exceed ESTA requirements.

Earned sick time can be used for more than an employee’s own illness. Qualifying reasons include an employee’s or family member’s illness, injury, medical treatment or preventive care, as well as certain circumstances involving domestic violence or sexual assault. Employers also need to follow ESTA rules regarding employee notice, documentation and protection from improper adverse employment actions.

For Michigan business owners, compliance goes beyond simply providing paid time off. Employers are required to maintain records documenting hours worked and earned sick time taken for at least three years, provide employees with required notice of their ESTA rights, and display the state’s required workplace poster. Employers should review their employee handbooks, PTO and attendance policies, payroll practices, recordkeeping procedures and manager training to ensure they are consistent with current requirements.

The Bottom Line: Michigan’s Earned Sick Time Act creates important responsibilities for employers. Taking time to review policies and procedures now can help businesses maintain compliance, properly manage employee leave and reduce the risk of costly disputes or penalties.

Michigan Earned Sick Time Act — Quick Compliance Checklist

• ☐ Confirm which employees are covered under ESTA.
• ☐ Determine whether you qualify as a small business (10 or fewer employees).
• ☐ Ensure sick time accrues at 1 hour for every 30 hours worked or use a compliant frontloading method.
• ☐ Provide the required amount of earned sick time based on employer size.
• ☐ Review PTO, attendance, and call-off policies for ESTA compliance.
• ☐ Allow sick time for all qualifying employees and family-related reasons.
• ☐ Follow ESTA requirements for notices and medical documentation.
• ☐ Provide employees with the required ESTA notice and display the workplace poster.
• ☐ Track hours worked and sick time used and maintain required records for at least 3 years.
• ☐ Train managers on protected sick leave and anti-retaliation requirements.
• ☐ Review policies periodically with HR or employment counsel.

This article is intended for general informational purposes and should not be considered legal advice. Employers should consult qualified legal or HR professionals regarding their specific compliance obligations.

Attorneys are at it again; small businesses are being flooded with lawsuits from former employees alleging they were not properly paid for cell phone expenses. It is important that your business immediately addresses this concern to avoid future lawsuits from billboard attorneys.

A seemingly small employee expense can create a much larger problem for California businesses. Under California Labor Code Section 2802, employers generally must reimburse employees for necessary expenses incurred while performing their jobs. This can include the business-related use of an employee’s personal cell phone, such as making calls, sending texts, checking email, communicating with customers, or using work-related apps.

California courts have reinforced this requirement. In Cochran v. Schwan’s Home Service, the California Court of Appeal held that when employees are required to use personal cell phones for work, employers must reimburse a reasonable percentage of the expenses even when the employee has an unlimited phone plan. This means simply assuming an employee has “unlimited data” may not eliminate an employer’s reimbursement responsibility.

For small businesses, inconsistent or nonexistent reimbursement policies can create significant exposure. What begins as a relatively minor monthly cell phone expense can potentially develop into claims involving multiple employees, back reimbursements, interest, attorney’s fees, and other employment-related allegations. California’s reimbursement law specifically provides for interest and, when an employee must bring an action to enforce reimbursement rights, attorney’s fees and costs.

What should California employers do? Review how employees use personal devices for work, establish a written reimbursement policy in which at least 20-40% of the phone bill is covered, and maintain documentation showing how reimbursements are handled. Businesses should also have their policies reviewed by qualified California employment counsel when appropriate.

Accurate employee recordkeeping is an important part of managing a business and maintaining compliance. One common employer mistake is keeping incomplete or outdated personnel files, including missing employment forms, outdated contact information, inconsistent training records, or incomplete documentation of performance and disciplinary actions. Employers may also overlook required retention periods or fail to properly separate confidential information, such as medical records, from general personnel files.

Another frequent issue is inconsistent documentation. Workplace incidents, safety training, policy acknowledgments, wage and hour information, and employee changes should be documented consistently and maintained according to applicable requirements. Poor recordkeeping can make it more difficult to respond to an employee dispute, regulatory inquiry, workers’ compensation claim, or employment-related lawsuit.

Employers should periodically review their recordkeeping practices, establish clear retention procedures, and ensure managers understand what information needs to be documented and where it should be stored. A well-organized recordkeeping system can help support compliance, improve HR practices, and provide valuable documentation when an issue arises.

Employee Recordkeeping Checklist

Personnel Files

• ☐ Keep employee contact and emergency information current
• ☐ Maintain signed offer letters and employment agreements
• ☐ Keep job descriptions and employment status changes documented
• ☐ Retain performance reviews and disciplinary documentation
• ☐ Maintain signed acknowledgments of company policies

Payroll & Employment Records

• ☐ Maintain accurate time and attendance records
• ☐ Document wage, salary, and compensation changes
• ☐ Keep required payroll and tax documentation
• ☐ Verify employee classifications are properly documented

Safety & Training

• ☐ Document required employee safety training
• ☐ Maintain certifications and licenses when applicable
• ☐ Keep records of workplace incidents and injuries
• ☐ Document new-hire safety orientations and policy training

Confidentiality & Retention

• ☐ Keep confidential or medical information separate from general personnel files
• ☐ Limit access to sensitive employee records
• ☐ Follow applicable federal and state record-retention requirements
• ☐ Use secure procedures for storing and disposing of records
• ☐ Conduct periodic audits to identify missing or outdated documentation

Quick Tip: Create a consistent recordkeeping process and schedule periodic file reviews. Good documentation can help demonstrate compliance and provide important support if an employment dispute, claim, or regulatory inquiry occurs.

An Owner-Controlled Insurance Program (OCIP) is a project-specific insurance program purchased and controlled by the project owner. Often called a “wrap-up,” an OCIP is designed to provide certain insurance coverages to eligible contractors and subcontractors just for that project. OCIPs always include general liability and sometimes also include worker’s compensation. The reason project owners buy OCIPs include; Inability for subs insurance to cover the work (new condos/multi facilities, hospitals, etc.), premium savings, more reliable coverage, and a reduction of cross litigation on construction defect claims.

How Does an OCIP Affect a Contractor’s Insurance?

One of the biggest misconceptions about an OCIP is that contractors no longer need their own insurance.  Contractors generally still need their own insurance program for exposures outside the OCIP. Depending on the program and contractor, this could include commercial auto, equipment, property, professional liability, pollution liability, off-site operations, and work performed on other projects.

This makes it important to understand exactly where the OCIP coverage begins and ends.

Make sure to save your OCIP certificate and enrollment forms. They will be required in order to deduct the premium from those projects from your normal GL and/or work comp policies, so you do not pay twice. Reports breaking down sales and payroll for those projects are also required.

Your Bid May Need to Be Adjusted

OCIP participants are asked to bid net insurance, OR to bid and then do a deduction worksheet to calculate the insurance premiums they will chip in to the OCIP. This is usually based on the sub’s insurance rates from their GL/WC insurances.

Incorrectly handling the insurance portion of a bid can reduce the profitability of a project before work begins.

Enrollment and Payroll Reporting Matter

Winning the contract does not automatically mean every contractor or subcontractor is covered by the OCIP. Contractors generally must complete an enrollment process and receive confirmation that they have been enrolled. Enrollment must be completed BEFORE work starts!

During the project, contractors may also be required to regularly report information such as:

• On-site payroll
• Workers’ compensation classification codes
• Hours worked
• Subcontractor information
• Changes in contract value
• Certificates and insurance documentation
• Project completion information

Accurate reporting is important because the OCIP administrator uses this information to manage coverage and project exposures.

Know Who and What Is Excluded

Not every contractor, subcontractor, employee, or operation will necessarily qualify for OCIP coverage. Certain operations or parties may be excluded under the specific program.

Contractors should ask their insurance agents to review the OCIP manual and insurance requirements carefully to determine who is enrolled, which locations are covered, what activities are covered, and which exposures remain the contractor’s responsibility.

Claims Still Require Contractor Involvement

Although the OCIP insurer or administrator may coordinate covered claims, contractors still play an important role in the process.

Supervisors and employees need to understand where and how injuries, property damage, accidents, and potential liability claims should be reported. Contractors may also need to coordinate reporting between the OCIP administrator and their own insurance carrier when it is unclear which policy applies.

Establishing the claims-reporting process before an incident occurs can help prevent confusion when something goes wrong.

Questions Contractors Should Ask Before Starting an OCIP Project

1. Before bidding or beginning work, contractors should be able to answer:
2. What insurance does the OCIP provide?
   Know the specific policies, limits, deductiblestentions, and coverage periods.
3. What isn’t covered?
   Identify exposures that must remain under your company’s insurance program.
4. How should insurance be handled in the bid?
   Understand exactly what insurance costs need to be removed, credited, or separately identified.
5. Are all of my subcontractors eligible?
   Determine enrollment requirements before subcontractors arrive on site.
6. What are the payroll and reporting requirements?
   Establish internal procedures for collecting and submitting accurate information.
7. What safety requirements apply?
   Make sure supervisors and employees understand project-specific expectations.
8. How are claims reported?
   Know who must be contacted following an accident or potential claim.
9. How long does coverage continue after completion?
   Review completed-operations protection and any potential long-term gaps.

The Contractor Takeaway

An OCIP can provide contractors with access to a coordinated insurance and risk-management program on a major construction project, but participating in one requires careful planning. Being enrolled in an OCIP does not mean every risk your company faces is covered.

Before submitting a bid, contractors should review the OCIP manual, contract requirements, insurance specifications, exclusions, enrollment procedures, safety requirements, and reporting obligations with their insurance advisor. Understanding how the OCIP works alongside your existing insurance program can help you bid accurately, avoid coverage gaps, manage subcontractors properly, and protect your business throughout the project.

Safety continues to be a major focus for Michigan’s construction industry. Over the past month, the Construction Association of Michigan highlighted updated MIOSHA guidance for concrete construction while continuing to emphasize jobsite safety across the state. As regulations evolve, contractors are encouraged to review safety procedures, train employees regularly, and document compliance efforts to reduce workplace injuries and potential penalties.

Beyond protecting employees, strong safety programs can have a direct impact on a company’s bottom line. Fewer accidents often translate into lower workers’ compensation claims, improved productivity, and stronger relationships with project owners. Construction businesses that prioritize safety culture are not only better prepared for inspections but also position themselves as preferred contractors for larger commercial and municipal projects. In today’s competitive market, safety is more than compliance—it’s a business advantage.

Infrastructure construction across Michigan remains strong, with major road, bridge, and public works projects continuing throughout the state. However, recent reports show inflation and rising construction costs are placing additional strain on project budgets. Industry leaders note that material inflation over the past several years continues to impact transportation projects, requiring contractors to carefully manage labor, scheduling, and procurement to maintain profitability.

For contractors bidding public work, efficiency is becoming just as important as winning the project. Investing in equipment maintenance, workforce retention, and strong safety programs can help reduce unexpected costs that eat into margins. Companies should also review insurance limits annually, especially for equipment, commercial auto, and umbrella coverage, as replacement costs continue to rise. Staying ahead of these changes allows construction firms to focus on growth instead of unexpected financial setbacks.

Michigan contractors are facing another wave of pricing pressure as material costs continue climbing due to new tariffs affecting steel, aluminum, and copper. Over the past month, many builders have reported reworking bids, delaying purchases, and adding escalation clauses to contracts to protect already thin profit margins. Industry experts estimate material costs could increase by as much as 6% compared to pre-tariff pricing, making accurate estimating more important than ever.

For construction business owners, now is the time to review supplier relationships, lock in pricing when possible, and evaluate contract language before signing new projects. Rising material costs don’t just impact profitability—they can also increase builders risk exposures, equipment values, and replacement costs. Working closely with your insurance advisor to ensure policies reflect today’s construction costs can help prevent costly coverage gaps if a claim occurs. As the market continues to shift, contractors who proactively manage both financial and operational risks will be in the strongest position to remain competitive.

Several California construction law changes that recently took effect continue to impact contractors throughout 2026. Updates include limits on retention for private construction projects, changes to housing development regulations, revised building standards, and other contract-related requirements that affect project administration and payment processes. While many contractors are already familiar with these changes, now is an ideal time to ensure internal procedures reflect the latest requirements.

Construction business owners should work closely with legal counsel, accountants, and insurance advisors to review contracts, payment terms, and compliance procedures before starting new projects. Taking time to understand these updates can reduce legal risk, improve cash flow, and help businesses remain competitive as California’s construction industry continues to evolve. A proactive review today can prevent costly issues later in the project lifecycle.

California’s ongoing wildfire recovery continues to generate significant rebuilding work throughout affected communities. However, state officials have recently increased enforcement against unlicensed contractors operating in disaster recovery zones, highlighting the importance of proper licensing and ethical business practices during reconstruction efforts.

Licensed contractors have an opportunity to build trust with homeowners by emphasizing transparency, proper documentation, and compliance with California regulations. As rebuilding accelerates, contractors should also review their liability, commercial auto, and builder’s risk insurance policies to ensure they’re adequately protected for larger workloads and unique wildfire-related risks. Strong documentation and contract management can make a substantial difference if disputes arise during these complex rebuilding projects.

California continues to prioritize housing development, with Governor Gavin Newsom signing new housing affordability reforms designed to reduce permitting delays, lower project costs, and accelerate residential construction across the state. For construction business owners, these changes could translate into more bidding opportunities, especially for firms specializing in multifamily housing, infrastructure, and affordable housing projects.

As new projects move through the pipeline faster, contractors should ensure they’re prepared for increased demand by reviewing staffing levels, subcontractor relationships, and insurance coverage. Higher project volume can also increase exposure to contractual disputes, workers’ compensation claims, and builder’s risk losses. Staying proactive with risk management and compliance can help contractors capitalize on California’s expanding construction market while protecting profitability.

California’s ongoing focus on water conservation is creating new business opportunities for commercial landscaping contractors. A recent homeowner’s experience with the SoCal Water$mart program highlighted how an $8,000 rebate helped fund the replacement of a traditional lawn with a low-water landscape. Similar rebate programs are available for many commercial properties, helping businesses, HOAs, office complexes, and industrial facilities reduce the cost of converting high-water-use landscapes into sustainable, drought-tolerant spaces.

For commercial landscaping contractors, these incentives can make it easier for clients to move forward with projects that may have otherwise been delayed due to budget constraints. Contractors who are familiar with available rebate programs can provide added value by helping property owners identify eligible projects, navigate application requirements, and install water-efficient irrigation systems, native plants, mulch, and other qualifying improvements. Some programs also offer direct payment options for participating contractors, improving project cash flow and simplifying the reimbursement process.

As California continues to encourage water-efficient landscapes and reduce non-functional turf, commercial contractors who position themselves as experts in sustainable landscaping and rebate programs will be well-equipped to win new business. Understanding these incentives not only helps clients lower project costs but also strengthens long-term customer relationships while opening the door to a growing market for water-wise landscape renovations.

Every excavation project carries serious risks, which is why National Trench Safety Stand Down Week continues to receive strong attention from Cal/OSHA. Last month, the agency urged California contractors to review excavation procedures, verify that a competent person is inspecting trenches daily, and ensure protective systems such as sloping, shielding, or trench boxes are used whenever required. Cave-ins remain one of the construction industry’s deadliest hazards, making trench safety a critical focus for every contractor performing underground work.

Construction business owners should use this time to evaluate jobsite safety practices and verify that crews understand excavation hazards before work begins. Investing in training, documenting inspections, and following established trench protection procedures can significantly reduce the risk of serious injuries while helping avoid costly OSHA penalties and project interruptions. A strong safety culture not only protects employees but also positions contractors as trusted partners on both public and private construction projects.