Compliance Stuff

Michigan employers received some good news on the wage and hour front when the state legislature passed amendments to the new paid sick leave and minimum wage laws at the 11th hour. Although employers did not get complete relief from the two laws, the legislative compromises will ease some of the burdens on employers. While some aspects took effect on February 21 as planned, others have been delayed or changed. We’ll give you some quick background on how we got here and identify the major changes from the two amendments. Quick Background As we previously discussed  here , a 2024 Michigan Supreme Court decision reinstated 2018 voter-initiated versions of the state’s minimum wage and paid sick leave laws, which were set to take effect on February 21. T he relevant laws are the Earned Sick Time Act (ESTA) and the Improved Workforce Opportunity Wage Act (IWOWA). As previously  reported , the Michigan legislature had competing bills on amendments to both laws in both chambers. Mini...

  Good news is   likely   coming for Michigan employers related to the state minimum wage and paid sick leave laws set to take effect February 21 . Last week, both chambers of the state legislature introduced separate sets of bills to further amend these laws, which are on track to soon impose annual minimum wage increases, gradually eliminate the tip credit, and require vastly expanded paid sick leave rights. State lawmakers appear poised to push through some changes that could somewhat ease employers’ burdens – though the specific changes that survive the legislative process, if any, remain to be seen and may not become finalized until   after   the state’s sweeping changes take effect next month. We’ll give you some quick background and context for these competing sets of bills, as well as eight key takeaways. Quick Background As chronicled  here  before, a 2024 Michigan Supreme Court decision reinstated 2018 voter-initiated versions of the state’s ...

Michigan employers soon will face a significantly higher minimum wage and more onerous employee sick leave obligations after the Michigan Supreme Court invalidated the Michigan legislature’s amendments related to two voter ballot initiatives. Mothering Justice v. Attorney General and State of Michigan, No. 165325 (July 31, 2024) . Effective Feb. 21, 2025, the state’s minimum wage rate will increase from $10.33 per hour to a rate that likely will exceed $12.00 per hour, with some forecasting a minimum wage as high as $12.50 per hour. The rate employers may pay tipped employees also will increase, from $3.93 per hour tip credit rate to 48 percent of the new minimum wage (or $5.76 per hour, assuming a $12.00 minimum wage). The Supreme Court declined to apply the wage increase retroactively. Employers will not be responsible for payment of back wages that would have been due employees had the legislature not amended the statute. In addition, nearly all Michigan employers will be required t...