Massive Changes to Michigan Minimum Wage and Sick Leave Policies

As mentioned in today's Shannon's Scoop, massive changes are coming to Michigan minimum wage and sick leave policies after a recent Michigan Supreme Court ruling.

Big changes are on the horizon for Michigan's labor laws. The Michigan Supreme Court has ruled that the state’s minimum wage, currently set at $10.33 per hour, will gradually increase to $12 by 2025 and reach $15 by 2028. According to the Detroit News this decision comes because "Michigan's high court said the Legislature acted inappropriately when it approved two petition-backed initiatives before Election Day in 2018, so they wouldn't go on the ballot, and returned later in the year to significantly weaken the policies."

Additionally, workers in the tipping industry, who currently earn $3.93 per hour plus tips, will see a phase-out of the lower wage by 2029. They will instead earn the standard minimum wage. However, there is some uncertainty about whether businesses will continue to allow tipping once workers receive minimum wage. I do believe this was an issue in the service industry in past when the Michigan minimum wage issue was supposed to be on the ballot for a vote in 2018.

Small businesses will now be required to provide up to 40 hours of paid sick leave, while larger businesses must offer up to 72 hours. These changes are substantial, and it will be interesting to observe their impact on both employees and employers.

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