Increases to Michigan’s minimum wage and paid sick time requirements won’t go into effect until February 19, 2023. In 2018, after collecting enough signatures, citizens’ initiatives increasing the minimum wage and expanding the state’s earned sick time laws were headed to the ballot. However, the legislature chose to approve the measures, which likely would have had the support of voters. Shortly after, they introduced legislation amending and greatly reducing the impact of the citizens’ initiative.
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.
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.
A few weeks ago, 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. 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.
An appeal was made, and the court found that immediate implementing of the increases could be problematic for employers and state agencies and granted a stay to the effective date until early next year.
Michigan Legislative Consultants is a bipartisan lobbying firm based in Lansing, Michigan. Our team of lobbyists and procurement specialists provide a wide range of services for some of the most respected companies in America. For more on MLC, visit www.mlcmi.com or connect with us on LinkedIn and Twitter.