Immediately Increasing Michigan’s Minimum Wage
Update: 7/20/22
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.
Source: Michigan Legislative Consultants Insider Intelligence, published 7/19/22
