Advocacy News – Aug. 7, 2024
As the Michigan Supreme Court ended its 2023-24 term July 31, they released several decisions negatively impacting the business community in cases challenging legislative, administrative and judicial powers. The cases impact the future of employment laws, the authority of regulatory agencies and more.
Why it matters: An important function of the MI Chamber is to be a strong advocate for members in matters pending before the Michigan Legislature. But it’s not enough to win the legislative battle and declare victory; we must be vigilant in the courts to retain these laws as written by the Legislature. Separation of powers is a foundational to our governing principles and we must stand guard protecting the rule of law and opposing those who seek to have judges act as super-legislatures, legislating from the bench and rewriting the work of properly elected senators and representatives.
What happened: The MI Chamber filed a record-setting number of Amicus Curiae (or “Friend of the Court”) briefs in the Court’s 2023-2024 term (some of which have yet to be heard). Our aim is to ensure the judicial branch understands the practical implications and ramifications of pending litigation on the broader business community and our economic climate and prosperity. While we were hopeful the Court would put politics aside and resist the urge to legislate from the bench, they didn’t in many of the opinions released over the last week and Michigan will suffer the consequences as a result of their actions.
Here’s a roundup of several cases decided by the Court in the closing days of its term:
- Regulatory Overreach (Environmental). Michigan Farm Bureau et al v. Dep’t of Environment, Great Lakes, and Energy. The MI Chamber joined forces with the National Federation of Business Michigan (NFIB) in a joint brief to support Farm Bureau and the state’s food and agriculture industry in challenging EGLE on whether they can change the conditions of a permit without going through the rulemaking process. Despite the clear effect on the public, EGLE refused to call the changes a rule. Read our brief HERE; read the Supreme Court’s decision HERE.
- Outcome: Lost. The Court’s decision will allow state agencies to exercise legislative power without following the Administrative Procedures Act (APA) and regulate without input or accountability, which could negatively impact businesses of every size and industry.
- Paid Sick Leave/Minimum Wage Requirements. Mothering Justice v. Attorney General. The MI Chamber joined forces with other business and trade groups arguing the Michigan Legislature had the clear constitutional authority to adopt and subsequently amend two ballot initiatives (one on paid sick leave, the other on minimum wage) going back to 2018, making them more workable for employers and employees alike. Plaintiffs argued Michigan law should revert to the ballot proposal language, which was never voted on by the people, and become prevailing law. Read the brief the Chamber filed with other business and trade groups HERE; read the Supreme Court’s decision HERE.
- Outcome: Lost. In a blow to our state’s job providers and economic competitiveness, the Michigan Supreme Court ruled that the minimum wage and earned sick time ballot proposals from 2018 will take effect Feb. 21, 2025. The net result is that the minimum wage will increase drastically, including the elimination of the tipped employee wage, and all employers must put in place a one-size-fits-all paid leave benefits for full-time, part-time and seasonal employees.
- Expanded Lawsuits for Anti-Retaliation Disputes: Cleveland Stegall v. Resource Technology Corp. The MI Chamber submitted a brief in this case, which reviewed whether the anti-retaliation provision of the Michigan Occupational Safety & Health Administration (MIOSHA), which mirror’s Federal OSHA, provides an exclusive remedy for employees (i.e., requires employees to go through MIOSHA/OSHA for remedies, not the court). Read our brief HERE; read the Supreme Court’s decision HERE.
- Outcome: Lost. The Court’s decision will have significant impact on employers/companies across the state and is an especially important issue given the National Labor Relation Board’s recent agreement with OSHA to pursue matters under the National Labor Relations Act, where the 30-day statute of limitations under OSHA already expired.
What’s next: Want to help us engage with the courts? The Chamber’s Amicus program is funded by the Michigan Chamber Litigation Center, a 501(c)(6) organization. The Litigation Center’s funding comes entirely from voluntary donations from Chamber members, and we devote our efforts and resources to lawsuits that could have a far-reaching impact on the business community and our state’s economy.
If you would like to learn more or help support the Litigation Center’s efforts, please contact Wendy Block at 517-371-7678 or wblock@michamber.com.