Minimum Wage Will Rise as Michigan Supreme Court Reinstates 2018 Ballot Initiatives
On July 31, the Michigan Supreme Court ruled that the Michigan Legislature’s “adopt and amend” tactic used in 2018 to alter ballot initiatives on minimum wage and earned sick time was unconstitutional. This decision reinstates the original initiatives, which significantly impacts Michigan’s labor laws. You may recall that the 2018 adopt and amend approach allowed the Legislature to adopt the initiatives’ language and then amend it within the same legislative session. However, the court has now ruled that this violated the people’s constitutional right to propose and enact laws. As a result, Michigan’s minimum wage, currently $10.33 an hour, will rise significantly. In February 2025, it will increase to approximately $12.58, with further annual adjustments for inflation. Also, by 2029, the tipped minimum wage will be phased out, equalizing it with the regular minimum wage, which will reach approximately $15 an hour.
In addition, the court ruling affects sick leave policies. Organizations with fewer than 10 employees must allow workers to accrue up to 40 hours of paid sick leave annually, while those with more than 10 employees must allow up to 72 hours.
What’s Next?
The ruling clarified that lawmakers are only prohibited from adopting and amending initiatives in the same legislative session they are adopted. The court wrote that legislators “may amend the law during subsequent legislative sessions.”
Several stakeholders have called on the Legislature to take further action on the Supreme Court’s decision. HCAM will likely join a coalition to support this action. In addition, Michigan House Minority Leader Matt Hall, R-Richland Township, suggested that the Legislature end its summer break to pass legislation to “save Michigan jobs.” On the other hand, House Speaker Joe Tate, D-Detroit, praised the ruling for providing clarity on the Legislature’s authority and stated that his office is reviewing the opinion.
HCAM will continue to provide updates as these issues develop.