Michigan Supreme Court restores minimum wage and sick leave laws
DETROIT (AP) — The Michigan Supreme Court overruled the Legislature on Wednesday, reinstating major changes to the state's minimum wage and paid sick leave laws, a victory for low-wage workers.
In a 4-3 decision, the court said Republican lawmakers violated the state constitution.
The laws were the result of a 2018 petition drive that collected more than 280,000 signatures.
The Legislature had two options: put the proposed laws on the ballot for voters to decide or simply adopt them. GOP lawmakers chose to approve them — but then watered them down after that year's election, before Democratic Gov. Gretchen Whitmer took over in 2019. Republican Gov. Rick Snyder signed the rollback legislation before he left office, triggering years of legal challenges that finally reached a climax 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," Justice Elizabeth Welch wrote.
Welch, Richard Bernstein, Megan Cavanagh and Kyra Bolden are aligned with the Democratic Party, while justices Elizabeth Clement, Brian Zahra and David Viviano, who disagreed, are aligned with the Republican Party.
Michigan Attorney General Dana Nessel issued the following statement Wednesday:
"This is a landmark victory for Michigan voters and a resounding affirmation of the power of direct democracy," Nessel said. "The Legislature cannot manipulate its power to undermine the will of the people. This ruling sends a clear message that elected officials cannot disregard the voices of their constituents. I am glad to see the Court recognize and respect that the people reserved for themselves the power of initiative, a crucial tool meant to shape the laws that govern them."
State Rep. John Roth of Interlochen called on his fellow lawmakers to return to work and address the threat to the restaurant industry.
"This ruling just started the countdown on a ticking time bomb within our restaurant industry," said Roth, a Republican. "Lawmakers have until February to take action and ensure that thousands of Michigan restaurant employees and businesses won't suffer because of this decision. We must return to work now. This is bigger than elections. We're talking about people's livelihoods. If these changes are allowed to stand, locally owned restaurants we've been bringing our families to for generations will close their doors forever. We can't let that happen."
How the decision impacts tipped workers
Michigan's minimum wage now is $10.33 per hour; less for workers in restaurants and other tip industries. Beginning on Feb. 21, 2025, Michigan's minimum wage will rise above $12 per hour.
The Supreme Court said a new wage schedule, adjusted for inflation as determined by the state treasurer, will take effect next February and then go up in subsequent years. The law also will gradually eliminate a lower minimum wage for tipped workers in restaurants.
Starting Feb. 21, 2025, tipped workers will make 48% of the adopted minimum hourly wage. The will increase to 60% of the minimum hourly wage in 2026, 70% in 2027 and 80% in 2028. By 2029, tipped workers and other staff will have the same minimum wage.
How the decision impacts paid sick time
The sick leave provisions mean many businesses will be required to provide workers with paid time off.
Under the Earned Sick Time Act, the amount of mandatory paid leave will go from 40 hours and jump to 72 hours in February 2025. Employers with fewer than 50 workers will no longer be exempt from having to offer paid sick time.
Wednesday's decision will impact nearly 500,000 Michigan workers.
The Michigan Chamber, a statewide business organization, said it was disappointed by the "court's activism."
One Fair Wage issued the following statement after the ruling:
"This is a great day for the more than 494,000 workers in Michigan who are getting a raise. We have finally prevailed over the corporate interests who tried everything they could to prevent all workers, including restaurant workers, from being paid a full, fair wage with tips on top," said Saru Jayaraman, president of One Fair Wage.