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

Fri Feb 21 12:08:34 EST 2025

I am working on information now. The bill is linked below so everyone can read it while I work on getting information out.

Section 2(l) (definition) and sections 3(1) and 3(2) of the bill address small employers. Small employers are NOT exempted, but have been given until October 1, 2025 to comply with the act.

https://www.legislature.mi.gov/documents/2025-2026/billenrolled/House/pdf/2025-HNB-4002.pdf

As always, please consult your library's attorney with questions involving employee benefits and policies.

Thanks!
Clare

Clare D. Membiela, MLS, J.D.
Library Law Consultant
Library of Michigan
MembielaC at michigan.gov<mailto: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 Top 10 Strategic Education Plan<https://www.michigan.gov/mde/resources/michigan-top-10-strategic-education-plan> provides focused direction to drive educational achievement in support of all learners.
[Michigan's Top 10 Strategic Education Plan]
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From: Teresa Natzke <tnatzke at franklin.lib.mi.us>
Sent: Friday, February 21, 2025 12:01 PM
To: Membiela, Clare (MDE) <MembielaC at michigan.gov>
Cc: John Clexton <jclexton at gcdl.org>; Michlib-l <michlib-l at mcls.org>
Subject: Re: [Michlib-l] Does anybody know yet? 11th hour change to EST Act about nonprofits?

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

[cid:image003.png at 01DB8459.0282E490]

________________________________
From: "Michlib-l" <michlib-l at mcls.org<mailto:michlib-l at mcls.org>>
To: "John Clexton" <jclexton at gcdl.org<mailto:jclexton at gcdl.org>>, "Michlib-l" <michlib-l at mcls.org<mailto: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://www.legislature.mi.gov/documents/2025-2026/billenrolled/House/pdf/2025-HNB-4002.pdf<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=>

Here is the legislation's page (with analyses, etc.)
https://www.legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4002<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=>

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:

[Graphical user interface, text, application    Description automatically generated]

Perhaps they were looking at a previous version?

Clare

Clare D. Membiela, MLS, J.D.
Library Law Consultant
Library of Michigan
MembielaC at michigan.gov<mailto: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 Top 10 Strategic Education Plan<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=> provides focused direction to drive educational achievement in support of all learners.
[Michigan's Top 10 Strategic Education Plan]
[Michigan.gov/Vote logo      Description automatically generated]<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 Michigan.gov/Vote<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=>.

From: Michlib-l <michlib-l-bounces at mcls.org<mailto: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<mailto: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 abuse at michigan.gov<mailto:abuse at michigan.gov>

From: John Clexton
Sent: Friday, February 21, 2025 10:47 AM
To: Michigan Library Association <mla at milibraries.org<mailto:mla at milibraries.org>>
Cc: Membiela, Clare (MDE) <MembielaC at michigan.gov<mailto: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
jclexton at gcdl.org<mailto:jclexton at gcdl.org>
989-347-1007
[cid:image006.png at 01DB8459.0282E490]

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