The Michigan Supreme Court made a significant ruling on Wednesday, reinstating laws for minimum wage and paid sick leave that were previously weakened by the state’s Republican legislature in 2018. As a result, Michigan’s minimum wage for regular and tipped workers is set to increase to $12 per hour starting next year.
The journey began in 2018 when a petition aimed at boosting the minimum wage and mandating paid sick leave garnered over 280,000 signatures. Instead of allowing voters to decide on the initiative during the November 6 ballot, the legislature approved it in September of that year.
However, just two months later, they reversed course, diluting the original proposals. The 2018 initiative aimed for a gradual increase in the minimum wage to $12 by 2022, but a bill signed by then-Governor Rick Snyder postponed that goal to 2030.
In terms of paid sick leave, the original plan stipulated that small businesses would provide 40 hours of paid sick time per year, and larger establishments would grant 72 hours. Post-revision, only businesses with 50+ employees were required to offer up to 40 hours annually.
After years of legal disputes, the Michigan Supreme Court ruled 4-3 that the legislature undermining its own laws constituted a breach of the constitutional process. Justice Elizabeth Welch highlighted that allowing such actions diminishes voters’ role in lawmaking.
This ruling paves the way for the state’s minimum wage to increase from the current $10.33 to $12 by February. Saru Jayaraman, president of One Fair Wage and a pivotal figure behind the 2018 initiative, celebrated the decision, stating, “We have finally triumphed over corporate interests who sought to undermine fair wages.”
In their announcement, One Fair Wage emphasized that this ruling positions Michigan as the eighth state to require full wages with tips on top. The organization is also advocating for a ballot initiative to raise the minimum wage to $15 per hour this year, having submitted 610,000 signatures in support.
However, the ruling has not been welcomed by everyone. Business groups expressed their concerns, with Amanda Fisher, NFIB Michigan State Director, stating that the decision could negatively impact employers across Michigan, labeling it a politically driven maneuver. She argued that the legislature’s amendments were intended to provide clarity amidst regulatory complications.