Lansing, Michigan – In a landmark decision on Wednesday, the Michigan Supreme Court restored changes to the state’s minimum wage and paid sick leave laws, marking a significant victory for low-wage workers across Michigan. The court decided 4-3 against the activities of the legislature that had earlier weakened these legislation following their first approval in 2018.
This debate started after a petition drive gathering more than 280,000 signatures caused the Michigan Legislature to pass new minimum wage and sick leave legislation. The GOP-led Legislature adopted the amendments instead of allowing the voters to decide by ballot, then undermined them following the 2018 election. Made immediately before Democratic Governor Gretchen Whitmer took office in 2019, this legislative action was signed into law by former Republican Governor Rick Snyder. This set off a series of court battles during the years finally ending on Wednesday.
Writing for the majority, Justice Elizabeth Welch underlined that letting the legislature revoke legislation within the same session they were approved compromises the democratic process and voter involvement in lawmaking. Different stakeholders have reacted strongly to the ruling.
“This is a landmark victory for Michigan voters and a resounding affirmation of the power of direct democracy,” Michigan Attorney General Dana Nessel said. “The Legislature cannot manipulate its power to undermine the will of the people. This ruling sends a clear message that elected officials cannot disregard the voices of their constituents,” she added.
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On the other hand, Interlochen’s State Representative John Roth voiced concerns about the negative consequences of this decision on the restaurant business, characterizing it as a “ticking time bomb” capable of closing family-owned eateries. He urged his colleagues to act quickly to lessen possible negative effects on the sector.
The court’s ruling implies major implications for Michigan’s workforce. The minimum pay in the state right now is $10.33 per hour. Beginning February 21, 2025, it is expected to rise to nearly $12 per hour, adjusted to inflation annually thereafter. The decision would also progressively phase out the lower minimum pay for restaurant tipped workers. Tipped employees will pay the same minimum salary as regular workers by 2029.
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The decision also expands the reach of the Earned Sick Time Act, which would force many companies to boost paid sick leave from 40 to 72 hours beginning in 2025, therefore impacting about 500,000 employees. Smaller companies with less than 50 employees will be subject to paying paid sick time instead of being exempt.
There have been mixed reactions following the court ruling on Wednesday. Heavily disappointed, the Michigan Chamber called the decision “court activism.” Advocacy group One Fair Wage praised the result while President Saru Jayaraman said, “This is a great day for the more than 494,000 workers in Michigan who are getting a raise. We have finally prevailed over the corporate interests who tried everything they could to prevent all workers, including restaurant workers, from being paid a full, fair wage with tips on top.”
Apart from redefining pay criteria in Michigan, the decision emphasizes the continuous discussions on workers’ rights and the balance of power between the voters and legislative authorities.