Advocacy News – Dec. 14, 2022
The Michigan Chamber attended the Court of Appeals (COA) oral arguments in a case that will determine the future of Michigan’s paid sick leave and minimum wage laws Tuesday.
The COA, who has yet to rule in the case (Mothering Justice v Attorney General), is considering whether to overturn a July 2022 Court of Claims ruling. At issue is whether the Michigan Legislature had the constitutional authority to adopt and subsequently amend (“adopt-and-amend”) two 2018 ballot initiatives. One would have increased the minimum wage to $12 per hour by 2022 and increased tipped wages from $3.75 to $9.60, and the other would have enacted one of most generous paid sick leave laws in the country, thereby forcing many businesses to make significant changes to their paid time off policies (PTO) and procedures.
The defendants, including the Attorney General (acting on behalf of the State of Michigan) and the Michigan Legislature, argue the COA should overturn the lower court’s decision because the Legislature has plenary authority under Article IV of the MI Constitution. They argue nothing in the constitution prohibits the Legislature from adopting an initiative proposed by the people and amending it within the same legislative session; therefore, the constitution grants them full control and the ability to act as they see fit.
The plaintiffs, including Mothering Justice, Michigan One Fair Wage, Michigan Time to Care and other progressive groups, argue this case arises from Article II (rather than Article IV), which is a reservation of rights of the people. Therefore, they argue the Legislature starts with a reservation of power and the power to adopt-and-amend is not granted to them.
Although the Chamber cannot predict an outcome in the case, we were encouraged by the line of questioning and the focus on the plain language of the Michigan Constitution. Judges Michael Riordan, Michael Kelly and Christopher Murray heard arguments for nearly an hour. A recording of the oral arguments can be viewed online, starting around 32:30.
Both parties have asked the COA to issue a published opinion and for a decision be rendered by Feb. 1, as the Court of Claims stay of its July decision expires Feb. 19. Unless the COA overturns the lower court’s decision, Michigan businesses would be forced to make significant changes to their paid time off policies (PTO) and procedures and wage schedules come Feb. 20, 2023. Find full details on what would need to be change.
For more on this case, read the Chamber’s Amicus Brief, and the Mothering Justice’s brief.
Regardless of the court decision, Michigan’s minimum wage will increase to $10.10 in the new year and the tipped wage will increase to $3.84 per hour. The increase from $9.87 to $10.10 per hour was set by Michigan’s Improved Workforce Opportunity Wage Act of 2018, which established an annual schedule of increases.
Please contact Wendy Block with questions at wblock@michamber.com.