Court Ruling Halts Paid Sick Leave, Minimum Wage Changes

Changes to the state’s paid sick leave and minimum wage laws that were scheduled to go into effect Feb. 19 are on hold, at least for now, thanks to a court ruling yesterday.

On Thursday, Jan. 26, the Michigan Court of Appeals overturned a 2022 Michigan Court of Claims decision that said the state Legislature could not adopt and amend a ballot initiative in the same legislative session.

The Legislature in 2018 adopted two state ballot initiatives expanding paid sick leave requirements as well as increasing the minimum wage to $12 per hour by 2022 and adding an inflation adjustment for future years. By adopting the initiatives the Legislature prevented them from appearing on the 2018 election ballot. However, in the same session, the Legislature subsequently amended the provisions, reducing the amount of required paid sick time and the minimum wage increase. The 2022 Court of Claims ruling had restored the original provisions of the legislation; yesterday’s ruling reverses that decision.

The issue is now likely to be taken up by the Michigan Supreme Court.

Employers need take no action now, but should follow this issue in the event of another future court decision. The MDA will inform you of any subsequent developments.

Jodi Schafer, MDA Journal columnist and human resources consultant, prepared a video yesterday discussing the court’s ruling. For additional HR questions, contact the MDA’s Brandy Ryan.