Michigan Court Boosts Minimum Wage, Expands Paid Sick Leave for Workers
The Michigan Supreme Court overruled the Legislature, thereby reinstating significant changes to the state’s minimum wage and paid sick leave statutes. This victory is a victory for low-wage workers.
Republican legislators were found to have violated the state constitution in a 4-3 decision by the court.
The laws were the outcome of a 2018 petition campaign that garnered over 280,000 signatures.
The Legislature was presented with two alternatives: either to place the proposed laws on the ballot for voter approval or to adopt them.
After the election of that year, Republican legislators opted to approve them; however, they were subsequently watered down before Democratic Governor Gretchen Whitmer assumed office in 2019. Before his departure, Republican Governor Rick Snyder signed the reversal legislation, which resulted in years of legal challenges that ultimately culminated at the state’s highest court.
“Allowing the Legislature to bypass the voters and repeal the very same law it just passed in the same legislative session thwarts the voters’ ability to participate in the lawmaking process,” Elizabeth Welch argued.
Justices Elizabeth Clement, Brian Zahra, and David Viviano, who disagreed, are aligned with the Republican Party, while Welch, Richard Bernstein, Megan Cavanagh, and Kyra Bolden are aligned with the Democratic Party.
The current minimum wage in Michigan is $10.33 per hour, with employees in restaurants and other tip-based industries earning less. Beginning on February 21, 2025, Michigan’s minimum wage will surpass $12 per hour.
The Supreme Court has announced that a new wage schedule will be implemented in February of the upcoming year and will increase in subsequent years, as determined by the state treasurer and adjusted for inflation. Additionally, the law will gradually eradicate a lower minimum wage for tipped workers in restaurants.
Tip laborers will receive 48% of the minimum hourly wage, effective February 21, 2025. In 2026, the percentage will rise to 60% of the minimum hourly wage, followed by 70% in 2027 and 80% in 2028. The minimum wage for tipped workers and other personnel will be the same by 2029.
Many businesses will be obligated to offer their employees paid time off as a result of the medical leave provisions.
In February 2025, the mandatory paid absence will increase from 40 hours to 72 hours as a result of the Earned Sick Time Act. Companies with fewer than 50 employees will no longer be exempt from the requirement to provide paid sick time.
The decision made on Wednesday will have an effect on nearly 500,000 Michigan laborers.
Source: CBS News
