|
Dear Howell Chamber Members,
Yesterday, a decision was made by the Michigan Supreme Court regarding paid leave and minimum wage. They ruled that two ballot proposals from 2018 will take effect February 21, 2025. One will raise minimum wage, including that of tipped employees, and the other to enact a one-size-fits-all paid leave benefits for full-time, part-time, and seasonal employees.
What happened:
By a vote of 4-3, the Michigan Supreme Court overturned a unanimous bipartisan ruling from the Court of Appeals in Mothering Justice v Attorney General. The case challenged the Michigan Legislature’s handling of two ballot proposals going back to 2018: one to increase the minimum wage and the other to enact a one-size-fits-all paid sick leave law. Because that process, now referred to as the “adopt-and-amend process,” has been found to be unconstitutional by the Michigan Supreme Court, the two 2018 ballot initiatives, which were never voted on by the people, will become law.
The Court said:
• The Earned Sick Time Act will take effect February 21, 2025.
• The Improved Workforce Opportunity Wage Act (minimum wage provisions) will take effect February 21, 2025, but “with a revised schedule that links the gradual phase-in of minimum-wage increases to the same annual schedule as originally proposed, but set into the future, and accounting for inflation.”
What's next:
This decision cannot be appealed, but we will continue to keep members informed on these issues. This decision will significantly impact job providers and workers alike, and employers need to take notice of what’s required, regardless of industry, employee count or benefits offered today.
Chamber Resources:
The MI Chamber is putting together a series of events and compliance tools for our members to break down businesses’ obligations:
Go deeper:
Read the full court briefing for more.
Janelle Smith
President, Howell Area Chamber of Commerce
| 
