[Michlib-l] Does anybody know yet? 11th hour change to EST Act about nonprofits?

Fri Feb 21 12:00:42 EST 2025

What about the number of employees? Are 10 or fewer exempt? 

From: "Michlib-l" <michlib-l at mcls.org> 
To: "John Clexton" <jclexton at gcdl.org>, "Michlib-l" <michlib-l at mcls.org> 
Sent: Friday, February 21, 2025 11:56:35 AM 
Subject: Re: [Michlib-l] Does anybody know yet? 11th hour change to EST Act about nonprofits? 

Hello John: 

Here is a copy of the enrolled bill - [ https://urldefense.proofpoint.com/v2/url?u=https-3A__www.legislature.mi.gov_documents_2025-2D2026_billenrolled_House_pdf_2025-2DHNB-2D4002.pdf&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=e6sAxXCJmykY2k1UijXWkmTzAl96Vq907WIJ-Knaxek&m=NBsqoTgQSFdSy0nj8wzdL-HLey-JSYK3RlmF0ozN0vHnZGji1wT-HoxufhIL3-SC&s=FEV6m-36SVDKPjvncF98j7p_UdNXH6ETk3xdTbmXWzw&e= | 
https://www.legislature.mi.gov/documents/2025-2026/billenrolled/House/pdf/2025-HNB-4002.pdf ] 

Here is the legislation’s page (with analyses, etc.) 

[ https://urldefense.proofpoint.com/v2/url?u=https-3A__www.legislature.mi.gov_Bills_Bill-3FObjectName-3D2025-2DHB-2D4002&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=e6sAxXCJmykY2k1UijXWkmTzAl96Vq907WIJ-Knaxek&m=NBsqoTgQSFdSy0nj8wzdL-HLey-JSYK3RlmF0ozN0vHnZGji1wT-HoxufhIL3-SC&s=Y1NEWp0yx1wLlinupY4-QHkY-vJ1AJTA8x2kmsajV1c&e= | https://www.legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4002 ] 

It looks like the amendment process cleaned up the language regarding the definition of “Employer.” The term “nonprofit agency” was removed from the definition – but that doesn’t mean those entities are exempted – the language of the final definition is pretty clear that ALL employers other than US Federal government employees are included: 

Perhaps they were looking at a previous version? 

Clare 

Clare D. Membiela, MLS, J.D. 

Library Law Consultant 

Library of Michigan 

[ mailto:MembielaC at michigan.gov | MembielaC at michigan.gov ] 

517-335-8132 

The research and resources above are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. 

“the State may not, consistently with the spirit of the First Amendment, contract the spectrum of available knowledge .” Griswold v. Connecticut, 381 U.S. 479, 482 (1965). 

Michigan’s [ https://urldefense.proofpoint.com/v2/url?u=https-3A__www.michigan.gov_mde_resources_michigan-2Dtop-2D10-2Dstrategic-2Deducation-2Dplan&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=e6sAxXCJmykY2k1UijXWkmTzAl96Vq907WIJ-Knaxek&m=NBsqoTgQSFdSy0nj8wzdL-HLey-JSYK3RlmF0ozN0vHnZGji1wT-HoxufhIL3-SC&s=cxDkvo5KPx05Fp9a2uk6Lrry2QxOk4Qz9kwjdboIzSU&e= | Top 10 Strategic Education Plan ] provides focused direction to drive educational achievement in support of all learners. 

[ https://urldefense.proofpoint.com/v2/url?u=https-3A__mvic.sos.state.mi.us_&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=e6sAxXCJmykY2k1UijXWkmTzAl96Vq907WIJ-Knaxek&m=NBsqoTgQSFdSy0nj8wzdL-HLey-JSYK3RlmF0ozN0vHnZGji1wT-HoxufhIL3-SC&s=jAHo9WOYfoh0rKSO_5TbZ4lHtoaD1WzaKCb9U1ngkWw&e= ] 

Get personalized voter information on early voting and other topics at [ https://urldefense.proofpoint.com/v2/url?u=https-3A__mvic.sos.state.mi.us_&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=e6sAxXCJmykY2k1UijXWkmTzAl96Vq907WIJ-Knaxek&m=NBsqoTgQSFdSy0nj8wzdL-HLey-JSYK3RlmF0ozN0vHnZGji1wT-HoxufhIL3-SC&s=jAHo9WOYfoh0rKSO_5TbZ4lHtoaD1WzaKCb9U1ngkWw&e= | Michigan.gov/Vote ] . 

From: Michlib-l <michlib-l-bounces at mcls.org> On Behalf Of John Clexton via Michlib-l 
Sent: Friday, February 21, 2025 11:00 AM 
To: michlib-l at mcls.org 
Subject: [Michlib-l] FW: Does anybody know yet? 11th hour change to EST Act about nonprofits? 

CAUTION: This is an External email. Please send suspicious emails to [ mailto:abuse at michigan.gov | abuse at michigan.gov ] 

From: John Clexton 
Sent: Friday, February 21, 2025 10:47 AM 
To: Michigan Library Association < [ mailto:mla at milibraries.org | mla at milibraries.org ] > 
Cc: Membiela, Clare (MDE) < [ mailto:MembielaC at michigan.gov | MembielaC at michigan.gov ] > 
Subject: Does anybody know yet? 11th hour change to EST Act about nonprofits? 

This morning, our finance team received a memo containing the following statement: 

The definition of "employer" expressly exempts a "nonprofit agency" from its definition. Beyond this, the legislation does not provide exemptions for any businesses or organizations (though see “accrual” for new rules regarding small businesses). 

Does this exemption refer to certified nonprofits or nonprofits categorized by tax code? 

Does our financial people have it wrong? 

I would appreciate any clarification on this matter. 

Thank you, 

John 

John Clexton 

2025 ARSL President 

Library Director 

Gladwin County District Library 

[ mailto:jclexton at gcdl.org | jclexton at gcdl.org ] 

989-347-1007 

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