LANSING, Mich. – On January 1, 2023, Michigan’s minimum wage rate will increase from $9.87 to $10.10 per hour as set by Michigan’s Improved Workforce Opportunity Wage Act of 2018 establishing the annual schedule of increases.
Effective January 1, 2023:
The minimum hourly wage will increase to $10.10 per hour.
The 85% rate for minors aged 16 and 17 will increase to $8.59 per hour.
The tipped employee rate of hourly pay increases to $3.84 per hour.
The training wage of $4.25 per hour for newly hired employees ages 16 to 19 for their first 90 days of employment remains unchanged.
There is pending litigation that might affect this minimum wage increase:
In 2018, a petition initiative organized by One Fair Wage sought to allow voters to decide on raising Michigan’s minimum wage to $12 an hour by 2022 and raise the minimum wage for tipped workers to 80% of the standard minimum wage in 2022, 90% in 2023 and ultimately match it in 2024.
The Legislature adopted the legislation and then amended it in 2018, putting in lower wage thresholds that increased the minimum wage to $12.05 by 2030 instead of 2022 and kept the tipped minimum wage at 38% of the standard one. As a result, the state’s current hourly minimum wage is $9.87 and $3.75 for workers who are expected to make up the difference in tips.
The Legislature’s amendment has been challenged in court as unconstitutional. On July 19, 2022, the Court of Claims issued a decision that agreed with that challenge and voided the amended versions of the Michigan Improved Workforce Opportunity Wage Act and Paid Medical Leave Act in favor of their original, unamended versions.
On July 29, 2022, the Court of Claims entered an order staying the effect of this decision until February 19, 2023, to give employers and the relevant state agencies time to accommodate the changes required by the ruling.
The Court of Claims’ ruling has been appealed. Pending final resolution of the appeal, and lifting of the stay, under the potential implementation of the originally adopted petition, the minimum wage rate for 2023 would be $13.03 and $11.73 for tipped employees.
For further information regarding the pending minimum wage litigation, and potential amended minimum wage rates as a result of that litigation, or a copy of the Improved Workforce Opportunity Wage Act and related resources, including the required poster, visit Michigan.gov/WageHour.
Following Tuesday’s general election where the Democratic Party flipped control of the Senate, the caucuses elected their leadership teams for the upcoming term, beginning in January 2023.
Senator Winnie Brinks (D-Grand Rapids) will serve as Senate Majority Leader. Serving alongside her for the Democratic Caucus will be Senator-elect Sam Singh (D-East Lansing), who previously served as House Democratic Leader. Additional members of their leadership team will be announced in the coming weeks.
The Republican caucus announced Senator Aric Nesbitt (R-Lawton) will serve as the Minority Leader. Additional members include:
Minority Floor Leader – Senator Dan Lauwers (R-Brockway)
Minority Whip – Senator Roger Victory (R-Hudsonville)
Caucus Chair – Senator Kevin Daley (R-Lum)
Assistant Minority Leader – Senator Rick Outman (R-Six Lakes)
Assistant Minority Floor Leader – Senator Lana Theis (R-Brighton)
Assistant Minority Whip – Senator Mark Huizenga (R-Walker)
Assistant Caucus Chair – Senator Jim Runestad (R-White Lake)
Associate President Pro-Tem – Senator-elect Joe Bellino (R-Monroe) (He was nominated for this position and will be elected by the entire body)
The House is slated to hold their caucus leadership elections at 3 p.m., including Speaker of the House. MLC will send an update after that takes place.
JACKSON, MI – The Jackson County Chamber of Commerce Political Action Committee (PAC) has announced its endorsements for political office, endorsements are based on legislative leadership and focus on issues concerning the continued growth of our business community.
Jackson has a historic opportunity to choose legislators in newly drawn districts. After interviewing candidates with unique and diverse experience the Political Action Committee (PAC) used parameters such as economic development, infrastructure, workforce development, and regulations as discussion points to determine who best fit the Chamber’s mission and goals.
With these parameters and some debate, the following candidates received the endorsement from the Jackson County Chamber of Commerce PAC:
Tim Walberg (US Representative 5th District)
Tim Golding (State Senate 14th District)
Sara Lightner (State Representative 45th District)
The 1978 addition is sinking and pulling away from the main structure. At some points, there is 6 inches of separation. The Sewer pipes are original and routinely leak raw sewage, often falling on deputies. Several large metal pans catch raw sewage and direct it to buckets which are routinely emptied. Only 5 of 24 electronic door locks work. Dated equipment cannot be repaired as it is no longer produced. Radio transmissions by deputies do not penetrate the solid concrete walls creating severe safety hazards. Heating and cooling is adjusted using vice grips which are propped up by metal poles. Locks on cell doors are failing and repairs are in the thousands for just one lock. Security fencing is inadequate and also sinking. The gate has a 2-foot gap when closed. Costs to repair Wesley Street are higher than a full teardown and replacement of the building.
The Chanter Road facility, and the north side addition to Wesley Street, was built using a ½ mill increase to property tax. This millage also accounted for additional funding for operational costs at the Chanter Road Facility. The ½ mill millage expired in 2021. The last year of collection is 2022. Costs for building the project are estimated at $51,895,705. ARPA (American Rescue Plan Act) funds can be used for approximately $2 million of the cost. Millage request for the balance of the cost is for 1 mill over 20 years; this is a half mill increase over the expired millage. 1 mill results in a property tax increase of $1 for every $1000 of taxable value. A house worth $200,000 has a taxable value of $100,000. Therefore, the property owner in this example would pay an additional $100 per year in property tax. The effective increase in taxes is really only half that, $50 per year, because of the previous ½ mill millage. – $100 per year = 27 cents per day – $50 per year = 13 1/2 cents per day
An architectural design firm, specializing in jails, worked with the Sheriff to complete a comprehensive study to determine the needs of Jackson County now and 20 years into the future. This includes: – Demolition of Wesley Street Jail; – A 250 bed jail addition to Chanter Road; – A new, and much smaller, Sheriff’s Office constructed at the Wesley Street location that includes an enclosed sally port, equipped with an elevator, for securely transferring inmates to court. State law requires the Sheriff’s Office be located in the county seat, which is the City of Jackson.
The Jackson Chamber works in partnership with local, state, and federal representatives to keep our Members updated on public policies and stances that affect their businesses. Due to the recent rulings on the Minimum Wage Increase, we asked Representative Julie Alexander to explain the expected appeals process and resources to express concerns. Her response is below.
July 26, 2022
Thank you for contacting me regarding the state Court of Claims’ recent decision to declare two Michigan laws regarding minimum wage and paid sick leave unconstitutional. I understand many job providers in our community have questions about what this ruling means, and I will continue to closely monitor this issue as the situation unfolds.
In 2018, the state Legislature approved two plans on minimum wage and sick leave that protected Michigan jobs, state workers and their families, and our struggling economy. The issues were brought to light after out-of-state special interests helped bankroll two poorly written petition drives in our state. The Court of Claims recently ruled the Legislature acted unconstitutionally in passing these bills.
First and foremost, it’s important to note the controversial decision is not yet effective. Most civil judgments are automatically postponed for 21 days to give parties time to appeal. The decision was issued on July 19, so Aug. 9 is the first possible but highly unlikely enforcement date. If and when the enforcement date arrives, Michigan law would revert back to language in the original petition drives.
But there is a very good chance the postponement gets extended well past 21 days. An independent team within the Attorney General’s office — whom we support — has already filed a motion asking the court to postpone the ruling throughout the entire appeals process, which could take several years. In case the court denies the team’s motion, the team has also filed a notice of appeal, allowing it to make the same motion quickly in the Court of Appeals if needed.
Even though the laws in question were enacted in 2018, the current Legislature has been actively engaged with this case from the beginning. We intend to participate as much as possible at the Court of Appeals level, as well as at the state Supreme Court. In the meantime, I can assure you we will continue to engage with impacted job providers to ensure your concerns and positions are heard.
Thank you again for contacting my office. I always encourage your feedback on important issues, as that helps me be an effective representative for our community at the state Capitol.
Below is an update regarding the minimum wage, tip wage, and sick time changes happening at the State Level.
Craig Hatch, President & CEO of the Jackson Chamber, also posted an update on Facebook this morning. You can watch that HERE.
Tuesday night, Court of Claims Judge Douglas Shapiro ruled that the adopt-and-amend strategy that was utilized during the 2018 legislative session for the Minimum Wage and Paid Sick Leave ballot proposals was unconstitutional and that the laws that were adopted before being amended are now in effect. As a reminder, the legislature amended each of the two proposals, making them more tenable for the businesses required to implement them.
What does this mean? While it is unclear at this time what the requirements are for implementation based on this ruling, a 21-day moratorium on the ruling exists, preventing its implementation until August at the very earliest. A summary of the two ballot proposals from 2018 that may be implemented as originally adopted by the legislature are as follows:
Minimum wage would be set at $12 per hour; the tipped minimum wage would be set at $9.60 (80% of full minimum wage). In 2023 the minimum wage would be adjusted based upon inflation and the tipped minimum wage would increase to 90% of the full wage and then match it in 2024 and thereafter.
Virtually every employer in the state, regardless of size, would be required to provide 1 hour of paid sick leave for every 30 hours worked (capped at 72 hours for employers with more than 10 employees and capped at 40 hours for employers with less than 10 employees).
What is next? The state’s assistant attorney general leading the constitutionality argument filed a Motion for Stay on Wednesday afternoon, which would delay implementation of the ruling until all appeals have been exhausted if it is granted. The MRLA, through a quote from Justin Winslow picked up in the Detroit News, was referenced specifically in the motion to demonstrate the chaos and fallout that would ensue if the ruling were to be immediately impacted. If the stay is granted, it would essentially hold in abeyance implementation of the 2018 ballot proposal language detailed above until all legal appeals have been exhausted.
The MLC has sent out an important update to Michigan’s minimum wage, tip wage and establishing earned sick time. In an effort to update our Membership, we want to make sure you are aware of this change.
See the press release from the Michigan Legislative Consultants (MLC) below. We are speaking with our Public Policy & Advocacy Committee about what the Chamber’s role is on this matter.
Court Rules to Reinstate 2018 Citizens’ Initiated Law – Immediately Increasing Michigan’s Minimum Wage, Tip Wage and Establishing Earned Sick Time
Late today, the Michigan Court of Claims ruled that the legislature’s 2018 “adopt and amend” strategy was unconstitutional and therefore, the state’s current minimum wage, tip wage, and paid medical leave laws are void and will be replaced with the 2018 citizens’ initiative ballot language. While an appeal of today’s decision is expected, the court’s decision was lauded by Attorney General Dana Nessel and many groups that lead the 2018 citizens’ initiative ballot drive.
Background: In 2018, after collecting enough signatures, two citizens’ initiatives were headed for the ballot when the legislature voted to approve of both in order to keep them off the ballot, where they would have likely been supported by voters. Soon after, the Michigan Legislature introduced two bills to amend and greatly reduce the impact of the citizens’ initiative which would have significantly raised the state’s minimum wage, required the tip wage by 100% of the minimum wage by 2024, and established an earned sick leave statute.
Based on today’s Court of Claims decision, the following is an overview of what will be instituted immediately:
Minimum and Tip Wage: The first citizens’ initiative raised the minimum wage incrementally to $12/hour by January 1, 2022. Beginning January 1, 2023, and on January 1 of each following year, the wage is adjusted by the rate of inflation with no cap.
The tip wage was also increased incrementally – beginning January 1, 2022, it is 80% of the minimum wage; January 1, 2023, it will be 90% of the minimum wage; and starting on January 1, 2024, it will be 100% of the minimum wage.
Under the law that was voided by the court today, the minimum wage of $12.05/hour wouldn’t have been reached until 2030 and the tip wage was set at 38% of the state’s minimum wage.
Paid Sick Time: The second citizens’ initiative expands the state’s earned sick time laws. It created the Earned Sick Time Act, providing workers with one hour of sick leave for every 30 hours worked, capped at 72 hours per year.
While the outcome of the decision and the next steps to challenge the decision are currently unknown, MLC will provide additional updates as we learn more.