Michigan Legislation Concerning Our Industry
Health Code
Septic Code Bill up before the Senate Natural Resources and Agriculture Committee (updated 03.02.2026)
(View Senate Bill 771, introduced 01.28.2026) The bill would authorize the Department of Environment, Great Lakes, and Energy (EGLE) and local health departments to inspect onsite wastewater treatment systems and regulate their installation, repair, and replacement. Within three years of the bill's effective date, EGLE would have to establish a Statewide Sewage Code that included management requirements and performance standards for systems to provide baseline protection for public health and the environment. The bill also would create a Technical Advisory Committee to advise EGLE on system standards, technologies, evaluator qualifications, and implementation of the Code. Additionally, the bill would require proprietary products be registered with EGLE prior to installation and would prescribe the application and review process for registrations.
The bill would establish evaluation requirements for onsite wastewater treatment systems that would generally require systems to be evaluated every 10 years with additional evaluation requirements based on system age, proximity to environmental features, changes in use, and other risk factors. Individuals who conduct evaluations would have to be registered with EGLE and would have to meet certain training requirements. The bill would prescribe civil
fines for failing to obtain evaluations, complete corrective actions, or for noncompliance and criminal penalties for fraudulent behavior. The bill would create the Onsite Wastewater Treatment System Administration Fund and the Public Education and Training Fund and require the bill's fees and fines to be deposited into the funds to be spent on appropriation for program management, grants to local health departments, data management, and public
education and outreach, among other things.
The bill would take effect 90 days after its enactment.
Proposed Septic Code Legislation Dies In House
After months of work and 10 drafts of proposed legislation, bills to amend Michigan’s Public Health Code to establish a statewide septic code died with the end of the 2023-2024 legislative session. Senate versions of the bills (SB 299/SB 300) passed the Senate but failed to get any action in the House before the legislature adjourned at the end of December, 2024. Expect the bill sponsors to reintroduce the bills in the new 2025-2026 legislative session. Prospects for the bills are unclear with the new Republican majority control of the Michigan House of Representatives.
Senate Bill 8 - Minimum Wage
Key Points for Minimum Wage
Tipped minimum wage: Senate Bill 8 gradually increases the minimum cash wage for tipped employees from 38% of the full minimum wage to 50% of the regular minimum wage by 2031.
Wage changes: Tipped minimum wage is $4.74 for the rest of 2025.
Regular minimum wage: Senate Bill 8 keeps the minimum wage to $12.48 starting Feb. 21, reaching $15 by 2027, and adjusts for inflation after that.
House Bill 4002 - Earned Sick Time Act
Key Points for Earned Sick Time
Frontloading Paid Sick Time: As an alternative to the accrual method, employers can choose to frontload at least 72 hours of paid sick time for immediate use each year, or 40 for a small business, which eliminates the requirement for carryover or accrual tracking for full-time employees.
Frontloading Part-time Employees: As an alternative to the accrual method, employers may frontload paid sick time for part-time employees as well, with a prorated amount, subject to specific notice and true-up requirements.
Accrual Method: If choosing the accrual method, employees accrue 1 hour of paid sick time for every 30 hours worked, and unused paid sick time rolls over up to 72 hours. Employers may limit the use of earned sick time to 72 hours, or 40 for a small business, in the 12-month period.
New Hire Waiting Period: If using the accrual method, employers may have a policy for new employees hired on or after 2/21/25 requiring these employees to wait up to 120 days before using accrued sick time. Employees accrue earned sick time during this waiting period. If frontloading, hours are available for immediate use.
Small Business Compliance: Small business is defined as an employer having 10 or fewer employees. Small businesses have until October 1, 2025, to comply with ESTA requirements.
PTO Policy: Employers can use a combined paid time off (PTO) policy to meet ESTA requirements, as long as the total paid leave meets or exceeds the necessary amounts and may be used for the same purposes.
Hourly Rate: For ESTA purposes, an employee's hourly rate is their normal hourly wage or base rate and excludes overtime, holiday pay, bonuses, commissions, tips, etc.
Enforcement: The Department of Labor and Economic Opportunity (LEO) is responsible for enforcing ESTA.
Sick Time Increments: Employers may choose to use either one-hour increments or the smallest increment for tracking sick time usage.