Michigan Supreme Court Invalidates Legislative Amendments to Minimum Wage, Paid Sick Leave Measures
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...