Michigan's minimum wage will be back on the rise and most employees will be entitled to sick time thanks to a ruling made Wednesday (7/31) by the Michigan Supreme Court.

The Michigan Supreme Court issued its opinion declaring the legislature's actions in 2018 unconstitutional, reversing action taken to alter two ballot proposals that had previously been passed.

Michigan's One Fair Wage Proposals Gutted

Michigan's One Fair Wage proposals would have raised our state's minimum wage to just over $12 an hour by 2023, eliminated the different wage scale for tipped workers, and required paid sick time for nearly all employees.

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Those proposals had enough signatures to go to the ballot in 2018. However, state lawmakers voted both proposals into law before November and then amended them - a measure referred to as "adopt and amend."

Today, after years of lawsuits, bickering, and appeals, the State Supreme Court ruled the legislature's actions unconstitutional in a 4-3 opinion.

Michigan's Minimum Wage Increase Back on Schedule

Michigan's minimum wage increase will return to the schedule originally laid out in the proposals. That schedule would have bumped the state's minimum wage to $10 in 2019, $10.65 in 2020, $11.35 in 2021, and $12 in 2022.

Today, the minimum wage in Michigan stands at $10.33 per hour and is scheduled to increase to $10.56 on January 1. Under the new ruling, the minimum will now increase to more than $12 on February 21 and go above $13 in future years. According to Crain's Detroit Business, the exact amounts of the increases will depend on the treasurer's adjustments for inflation.

Tipped workers will follow the same schedule for the increase to the minimum wage and employers will be allowed to claim less of the tips against the hourly wage paid to tipped employees.

Sick Time for Most Employees

The Earned Sick Time Act will require most employers in Michigan to provide at least 72 hours of paid sick leave each year to employees. Even part-time employees will earn one hour of paid sick leave for every hour worked.

That act goes into effect on February 21, 2025.

Opponents, such as the Michigan Restaurant and Lodging Association, say the rulings may force some establishments to lay off workers in order to remain profitable.

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