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BREAKING NEWS: Court Ruling on Michigan's Paid Sick Leave and Minimum Wage Laws Could Impact Your Business

BREAKING NEWS: Court Ruling on Michigan's Paid Sick Leave and Minimum Wage Laws Could Impact Your Business

The Michigan Court of Claims ruled on Tuesday, July 19, that the Michigan Legislature’s 2018 “adopt and amend” strategy employed to find a workable compromise to two ballot initiatives increasing the minimum wage and enacting a paid sick leave law was unconstitutional. The Legislature is expected to appeal the decision in the Michigan Court of Appeals and request a stay

Unless a stay is granted and the decision is ultimately reversed by a higher court, the ruling states the law would immediately revert back to the 2018 ballot language. This means Michigan’s paid medical leave law will require virtually 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).

The Michigan Chamber released the following statement from Wendy Block, vice president of business advocacy and member engagement, in response to the court’s ruling:

We are incredibly concerned about the crippling effect this ruling could have on Michigan employers and employees alike. While we are still sorting through the details, we are stunned by this determination and its many varied implications. The talent shortage has employers already paying historic wages and benefits – all while facing rising inflation and supply chain chaos – just to keep the doors open. Employees should be equally concerned about the cost pressures this decision will place on businesses and the impact it could have on employee hours and benefits. We believe time and energy should focus on ways to help job providers fully rebound from COVID impacts and workers overcome barriers to employment like ensuring affordable childcare, housing, and transportation. We remain hopeful the Court of Claims decision ultimately will be overturned.”

Read on for more specifics regarding the wage and benefits provisions and next steps.

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