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Minimum Wage/Paid Sick Leave Laws Stayed by Court of Claims

The ruling that would have increased the state’s minimum wage to $12/hour and required practically all Michigan employers to provide at least 72 hours of paid sick leave has been stayed by the Court of Claims.

Background:

Two weeks ago, the Michigan Court of Claims ruled in Mothering Justice v. Nessel that the Michigan Legislature acted unconstitutionally when they used an “adopt and amend” strategy on two initiatives (the Improved Workforce Opportunity Act and the Earned Sick Time Act). As such, the amended laws were voided and the language of the initiatives restored.

Without action by the Courts, that would have meant that the state’s minimum wage would increase to $12/hour and employers would have to provide up to 72 hours of paid sick leave beginning on 8/9/22.

Latest Update:

Shortly after the ruling was issued, the Attorney General filed a request for the Court of Claims to stay the decision pending an appeal of the case to the Court of Appeals. Accordingly, last Friday, 7/29/22, Judge Douglas Shapiro stayed his decision though 2/19/23 and advised any further actions or requests should be directed to the Court of Appeals or directly to the Michigan Supreme Court.

Impact for MMA Members:

While this is a temporary victory, this situation remains murky. Without further action from the Court of Appeals or the Michigan Supreme Court, the laws will now go into effect in February 2023. Manufacturers should continue to consult with their legal counsel on what changes will need to be made to employee policies in the event that the Courts decide to allow the laws to be enforced next year.

As always, MMA continues to monitor this situation. We are leading the discussions with numerous interest groups on the strategy for further appeals to resolve this situation. We will also continue to stay in touch with the Department of Labor and Economic Opportunity (LEO) as they share more information about their work in administering the Acts.

For more information, see the memo from MMA's Dave Worthams to MMA Policy Committee members.

Contact David Q. Worthams

David Q. WorthamsDirector of Employment Policy
Call 517-487-8511
E-mail worthams@mimfg.org