This afternoon, Court of Claims Judge Douglas Shapiro agreed to stay his ruling that the adopt-and-amend strategy that was utilized during the 2018 legislative session for the Minimum Wage and Paid Sick Leave ballot proposals was unconstitutional until February 19, 2023. The MRLA has been working tirelessly since the original ruling to demonstrate how catastrophic not granting a stay would be to our industry.
What does this mean?
This means that no requirements change as of now until February 19, 2023. More specifically:
Minimum wage remains at $9.87 per hour, not the $12 per hour that would have taken effect without the stay
Tipped minimum wage remains at $3.75 per hour, not the $9.60 per hour it would go to without a stay
- No changes to paid sick leave requirements
What is next?
The MRLA supports a stay of Judge Shapiro's ruling until all appeals have been exhausted and urges the state to file such a request with the Court of Appeals immediately. Given that the February 19 deadline is just 205 days away, it is also possible that a motion to expedite the case is forthcoming.
Statement from MRLA President & CEO, Justin Winslow:
"Judge Shapiro’s decision to stay the implementation of his ruling until February has successfully prevented the immediate economic decimation of full-service restaurants, but it leaves a teetering industry unsure of its future and incapable of making informed decisions to regain stability. We are hopeful that the state of Michigan files for a full stay of Judge Shapiro’s ruling to the Court of Appeals and that ultimately a decision is reached that allows Michigan restaurants a reliable path towards full recovery which includes operating with a tip credit like 42 other states currently do."