In a 3-0 decision issued today, Jan. 26, the Michigan Court of Appeals (COA) solidly overturned a July 2022 Court of Claims ruling (Mothering Justice v Attorney General) finding that the Michigan Legislature lacked 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 in 2023 and increased tipped wages to the full minimum wage, and the other would have enacted one of most sweeping paid sick leave laws in the country, thereby forcing nearly every business across the state to make significant changes to their paid time off policies (PTO) and procedures.
What this Means:
Because the lower court’s decision was reversed and given immediate effect, Michigan businesses will not be forced to make significant changes to their paid time off policies (PTO) and procedures and wage schedules come Feb. 19, 2023. Unless the Michigan Supreme Court subsequently decides to take up and reverse the COA’s decision or the Legislature takes action, these laws remain unchanged. Read the Chamber’s full statement on the COA’s decision.
How the Chamber Has Been Involved:
The MI Chamber has been an advocate for job providers on this issue for many years. Most recently, we filed an Amicus Brief on this case, arguing for a reversal of the lower court’s misguided decision.
What the Court Said:
The COA was being asked to consider whether the two statutes that were enacted by the Legislature under the initiative process outlined in the state Constitution could be amended during the same legislative session in which they were enacted. The Court of Claims held that the Legislature was prohibited from doing so, and thus ruled the statutes were unconstitutional, thereby ordering the ballot initiative language to take effect. However, the COA today ruled that “[b]ecause the trial court’s conclusions are not supported by either the text or intent of [the constitution] we reverse the Court of Claims’ and remand for entry of an order granting the state’s motion for summary disposition.”
To view the opinion(s) and any associated document(s), click the link(s) below.
What’s Next:
We fully expect this decision to be appealed to the Michigan Supreme Court. It is unclear whether the Court may take up. The MI Chamber will continue to closely monitor the status of that appeal and any outcomes. We will also stay on top of this issue for any action by the Michigan Legislature and whether any changes will be proposed given that the lower court’s decision has been overturned.
The Chamber’s webinar previously scheduled for Feb. 7 on this issue is cancelled. If you already signed up for that briefing, you will receive a separate email.
Please contact Wendy Block with any questions at wblock@michamber.com.