Minimum Wage, Paid Sick Time Increases Halted

Liz Gullett

Jan 26, 2023

The increase to the state’s minimum wage, which was set to go into effect on February 19, 2023, has been stopped under a ruling handed down by the Court of Appeals this afternoon. Additionally, expansions to the state’s earned sick time laws, providing workers with one hour of sick leave for every 30 hours worked (capped at 72 hours per year) has been blocked by the Court.

The issue stems from two 2018 citizens’ initiatives that collected enough voter signatures to be placed on the general election ballot that year. However, prior to that, the legislature chose to approve the measures, which likely would have had the support of voters. Shortly after, the legislature introduced bills amending and greatly reducing the impact of the two citizens’ initiatives.

The disagreement over the constitutionality of the ‘adopt and amend’ strategy utilized by the legislature has been ongoing and several lower courts have ruled on the issue. As with prior rulings, it is expected this decision will be appealed to the Michigan Supreme Court.

Under the citizens’ initiative, following a specified increase to the hourly wage this year, Michigan’s minimum wage would have been adjusted every January 1 by the rate of inflation, without a cap. The tip wage was also set to increase incrementally, beginning at 80% of the minimum wage this year; 90% in 2023, and 100% of the minimum wage beginning in 2024.

To read the full opinion by the Michigan Court of Appeals, please click here.

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