Advocacy News – Sept. 19, 2024
The Michigan Supreme Court on Wednesday responded to the Attorney General’s request for clarification on how to interpret the Court’s July 31 minimum wage ruling and implement new minimum wage and tipped wage rates.
Why it matters: Responding to a request for clarification, the justices acknowledged a “clerical” error in their blockbuster July ruling, which requires the state to implement new minimum wage and paid sick leave laws proposed in a voter-backed 2018 petition drive. The Court’s Sept. 18 order specified:
- New minimum wage rates. Although the law requires the Michigan Department of Treasury to submit the final minimum wage increase by Nov. 1, the Court agreed with the interpretation the increases proposed by the AG in her brief, meaning the minimum wage will increase to $12.48 in 2025, $13.29 in 2026, $14.16 in 2027, $14.97 in 2028, and increase by the rate of inflation (CPI-W) every Feb. 21 thereafter.
- Clarity on the tipped minimum wage. Under the Court’s July 31 opinion, Michigan’s tipped minimum wage will phase out. The Court clarified that the tipped wage will reach 100 percent of the regular minimum wage in 2030 rather than 2029 as the Court’s opinion first wrote. This means the tipped minimum wage will increase to 48% of the full minimum wage in 2025, 60% in 2026, 70% in 2027, 80% in 2028, 90% in 2029, and 100% in 2030.
- Date of annual increases. The Court confirmed that they intended for annual increases in the minimum wage to happen on Feb. 21 of each year, unlike the current Jan. 1.
Other happenings:
- Servers Storm Lansing: An estimated 600 of servers and bartenders took to Lansing Wednesday for a rally calling on lawmakers to preserve the current tipped minimum wage scale, arguing that pending changes will dramatically hurt their earnings. Rallygoers argued they take home substantially more pay through tips earned waiting tables or working shifts behind the bar. The rally was organized by Save MI Tips, a worker-led initiative.
- Labor Unions Take Hard Stance on Minimum Wage Changes. In a disappointing turn of events, several of the biggest labor unions released a letter to legislative leaders Wednesday demanding they “honor the court’s decision and allow minimum wage increases to proceed without interference.” They are asking lawmakers to “stand firm in these worker gains and reject any efforts to obstruct or undermine them.”
The letter, which seems to be specific to the minimum wage debate, was signed by the Michigan American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), Michigan Education Association (MEA), American Federation of Teachers (AFT), Service Employees International Union Michigan (SEIU), United Food and Commercial Workers (UFCW), American Federation of State, County and Municipal Employees Michigan (AFSCME), and the Michigan Nurses Association.
What’s next: The Michigan Chamber continues to push for legislation to soften the impact of the Court’s decision – both on the minimum wage and paid sick leave issues.
- Given the high stakes of this debate along with the tight deadline we are under to get legislation passed, we are asking Chamber members and business people across the state to make their voices heard with lawmakers.
- You can participate in quick and easy action alerts for paid leave and minimum wage. Simply follow the prompts below. The platform will automatically populate your legislators. You’ll be able to craft your own message (if you wish) before sending your email.