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Michigan Minimum Wage and Paid Sick Leave Changes Delayed Until February

BY: Mavanee Anderson, Esq. | 08/12/22

Amendments made by the Michigan state legislature to voter-approved ballot initiatives on minimum wage and paid sick leave (PSL) “effectively thwarted the intent of the [p]eople” and were unconstitutional, according to an opinion issued by the Michigan Court of Claims [Mothering Justice v. Dana Nessel, Case No. 21-000095-MM (Mich. Ct. Cl., opinion filed 7-19-22; stay order filed 7-29-22)].

The outcome of that decision means the state minimum wage will increase, more employers will be required to provide PSL, and the accrual rate of PSL will increase. The judge stayed the effective date of the court’s order until February 19, 2023, to give employers and state agencies time to implement the required changes.

The amendments made by the state legislature substantively changed some provisions of the ballot initiatives, including by reducing the minimum wage increase from $12 per hour (under the ballot initiative) to $10.10 per hour (under the amended law), reducing the total annual amount of PSL from 72 hours per year (ballot initiative) to 40 hours per year (amendments), and exempting employers with fewer than 50 employees from PSL requirements.

The court decision nullifies those changes made by the legislature, so the ballot initiatives will be implemented as originally written.

Interested in more state and local payroll coverage? APA’s PayState Update eNewsletter is perfect for you.


Mavanee Anderson, Esq., is Editor of PayState Update and Payroll Information Resources for the APA.