Last month, the Michigan Court of Claims ruled that the Legislature’s 2018 “adopt and amend” strategy to find a workable compromise on two ballot initiatives increasing the minimum wage and enacting a paid sick leave law was unconstitutional.
In the original decision, the ruling states the law would immediately revert back to the 2018 ballot language by August 9. A stay has been granted and this will not take effect until February 19.
This would mean Michigan’s paid medical leave law will require most every size and type of business, and class of employee, to receive 72 hours per year of paid sick leave and the state’s minimum wage will increase to $12 an hour (and a large increase for tipped employees).
Another appeal is expected to take this to a higher court before the February 19 effect date. Read a comparison of the amended law and the original now in affect here.
Impact to our Local Businesses
This ruling is extremely concerning to the Grand Rapids Chamber and our members. The original, “one size fits all” proposal from 2018 puts Michigan at a competitive disadvantage to other states, and places a heavy burden on small employers and restaurants. The modifications the Michigan Legislature made struck a balance between providing time off to Michigan workers and ensuring ongoing economic expansion and continued job growth.
As businesses recover from pandemic policies resulting in state-ordered business closures, face economic uncertainty and an ongoing talent crisis, the timing of this ruling is alarming. We will be sure to keep you informed as things progress.
For questions or more information, contact Katie Doyen, staff lead of Health Care & Human Resources at katie@grandrapids.org.
