Regulatory Rundown: February/March 2025

Law Changes Coming in February and March 2025

Earned Sick Time Act

As the clock ticks down to the Feb. 21, 2025 effective date of sweeping changes to sick time leave requirements which dramatically impact businesses of all sizes, the new legislature has taken substantial steps towards corrective action where the previous legislature failed. House Bill 4002 and Senate Bill 15, commonly referred to as the Earned Sick Time Act (ESTA), reach a less onerous compromise for businesses in the state of Michigan. These bills recognize that most employers voluntarily provide generous leave to their employees and steer away from more unnecessary regulation. Michigan Retailers Association prefers and is actively supporting HB 4002, which more clearly addresses the relevant issues and exempts small businesses.

Most notably, HB 4002 exempts employers who have less than 50 employees and seasonal and part-time employees, limits carryover to 72 hours annually, allows employers to front load leave time, permits sick time to be combined with other paid time off benefits, removes the three day no-call, no-show before requiring documentation provision of the existing law, and eliminates the rebuttable presumption and private right of action against employers.

Under the leadership of Speaker Matt Hall and Representative Bill Schuette, among others, the House formed a Select Committee on Protecting Michigan Employees and Small Businesses. The Committee heard many hours of testimony and sent HB 4002 to the full chamber on Jan. 16, 2025. The bill passed with bipartisan support on Jan. 23, 2025 and has been transmitted to the Senate for consideration.

Passing HB 4002, or a similar version, is critical to all businesses in the state of Michigan and we strongly encourage all MRA members to contact their local legislators to voice their support.

If you need any assistance with doing so, email us at askusfirst@retailers.com.

Corporate Transparency Act and Your Obligations

On Jan. 23, 2025, the United States Supreme Court granted the Department of Treasury’s request to lift the nationwide injunction against enforcement of the Corporate Transparency Act (CTA). With a separate injunction in place, there are differing opinions about the CTA’s legal status. FinCEN has stated that filing is not currently required but to be safe, if you have not already filed, you may want to do so.

[File with FinCEN]

Retail Trends

2024 Retail Returns to Reach $890 Billion

According to the annual report compiled by the National Retail Federation and Happy Returns, a UPS Company, returns are a cost of doing business. They’re also an opportunity for an additional touchpoint with customers and a chance to give them another positive shopping experience.

Key Takeaways:

• 16.9% of sales are returned.
• Returns made specifically during the holiday season shopping are 17% higher compared to the annual return rate.
• 76% of shoppers see free returns as a key factor in deciding where to shop.
• 93% of retailers say return fraud is a significant worry against rising costs.
• 68% of retailers will focus on improving their return systems in the next six months.
• Bracketing (buying many items to return a few) is rising among Gen Z, with 51% claiming to do this during their shopping trips.

The Food Industry Association Report: In-Store Bakeries

The FMI Power of In-Store Bakery 2024 Report highlights the importance of in-store bakeries at primary grocery stores and consumer preferences for bakery items. With a focus on indulgent and special occasion items, the report provides insights into shopper behavior and packaging preferences.

Primary Grocery Stores as Bakery Destinations:

• 69% of shoppers consider having an in-store bakery at their primary grocery store very or somewhat important.
• 57% of shoppers purchase indulgent bakery items or desserts at their primary store, while 8% buy them at a bakery, and only 4% make them at home.
• 57% of shoppers buy special occasion items at their primary store, while 15% buy them at a bakery, and 8% make them at home.

Packaging Preferences:

• 51% of shoppers prefer pre-packaged bakery items.
• 25% prefer not packaged, with self-serve options.
• 24% prefer not packaged, with clerk assistance.

Visibility Through Packaging:

• 53% of shoppers think it’s very important to see bakery items through the packaging.
• 38% consider it somewhat important.
• 9% think it’s not important.

Deadlines and Reminders

• March 2 – Electronic Reporting of MIOSHA Form 300A
• March 2 – Summary of Work-Related Injuries and Illnesses (Establishments with 250 or more employees).
• March 30 – Renew food establishment licenses online at MDARD (Current licenses expire April 30).
• March 30 – Renew bottled water dispensing machine license at MDARD (Current licenses expire April 30).
• April 15 – Renew and print liquor licenses online at MLCC (Current licenses expire April 30).

Monthly reminders:

• Sales & Use Tax – Monthly & EFT – On or before the 20th day of the following month.
• Withholding Tax – Monthly & EFT – On or before the 20th day of the following month.
• Retailer’s Prepaid Wireless 911 Surcharge – Within 30 days of the close of each month. Receipt of a complete Form 5012 is required regardless of payment method.

Quarterly reminders:

• Corporate Income Tax (CIT) Estimated Returns and Payments (Jan. 15, April 15, July 15, Oct. 15).
• Sales & Use Tax – Quarterly & EFT – On or before the 20th day of the month following the quarter (Jan. 20, April 20, July 20, Oct. 20).
• Withholding Tax – Quarterly – On or before the 20th day of the month following the quarter (Jan. 20, April 20, July 20, Oct. 20).
• Unemployment Employer’s Quarterly Wage/Tax Reports (Jan. 25, April 25, July 25, Oct. 25)