Michigan Revives Changes to Minimum Wage, Paid Sick Leave

The Michigan Supreme Court recently revived increases to the state’s minimum wage and changes to state requirements to provide workers with paid sick time.

We’ve gathered articles on the news from SHRM Online and other outlets.

Legislature Overruled

In a 4-3 decision, the court reinstated major changes to the state’s minimum wage and paid-sick-leave laws. The laws were the result of 2018 petition drives. The Legislature had two options: put the proposed laws on the ballot for voters to decide or adopt them. The lawmakers approved them, but then watered them down. Then-Gov. Rick Snyder signed the rollback legislation, and years of legal challenges followed.

“Allowing the Legislature to bypass the voters and repeal the very same law it just passed in the same legislative session thwarts the voters’ ability to participate in the lawmaking process,” Justice Elizabeth Welch wrote in the decision.

The sick leave provisions mean many businesses will be required to provide workers with paid time off. Under the Earned Sick Time Act, the amount of mandatory paid leave will increase from 40 hours to 72 hours in February 2025. Employers with fewer than 50 workers will no longer be exempt from having to offer paid sick time. The decision will affect nearly 500,000 Michigan workers.

(AP)

State Minimum Wage Will Rise

As a result of the ruling, Michigan’s hourly minimum wage of $10.33 is expected to go up by at least $2 in February, once the state treasurer calculates inflation adjustments. There will be subsequent cost-of-living increases through 2029. In addition, tipped workers will be subject to the same minimum wage as all other workers by 2029.

(The New York Times)

Dissenting Justice

In a dissenting opinion, Justice Brian Zahra wrote that the Michigan Supreme Court lacked the authority to enact the proposed initiatives. Zahra said the court’s options were either to uphold the Michigan Court of Appeals’ ruling that the Legislature had the authority to adopt and amend the petitions or to rule that the petitions should be enacted as they were proposed in 2018.

“In the clearest way possible, the [Michigan Supreme] Court exercises legislative power, drafting new legislation that has never been approved by the Legislature or approved by the voters,” Zahra wrote.

(Detroit Free Press)

Federal Minimum Wage Unchanged

The federal minimum wage has not been raised since July 2009 and is at $7.25 per hour.  However, multiple states and cities have raised their minimum wages.

(SHRM Online)