Advocacy News – Nov. 1, 2023
Oral arguments will be heard Dec. 6-7 on several cases pending before the Michigan Supreme Court (MSC), including Mothering Justice, which seeks to reverse a January 2023 Court of Appeals (COA) decision supporting the Legislature and its 2018 use of what’s commonly referred to as the “adopt-and-amend strategy” to address two ballot proposals: one on minimum wage and the other on paid sick leave.
Why it matters: If the MSC opts to reverse the clear-cut COA decision, Michigan’s minimum wage would raise to $13+/hour in 2024, including for tipped employees, and employers would need to comply with one of most sweeping paid sick leave laws in the country, forcing nearly every business across the state to make significant changes to their paid time off policies (PTO) and procedures.
What happened: The MSC is being asked by the plaintiffs, Mothering Justice, to reverse a January 2023 COA decision supporting the Legislature and its 2018 use of the adopt-and-amend strategy. The COA decision overturned a Aug. 2022 Court of Claims decision finding that the adopt-and-amend strategy was unconstitutional.
The fate of these laws now rests with the MSC. The MI Chamber, a member of the Small Business for a Better Michigan Coalition, supports the adopt and amend strategy through this ongoing litigation. We support the COA decision which “made plain that the legislature clearly has the constitutional authority to amend initiated legislation it adopts in the same legislative session.”
Net impact: If the MSC were to reverse the COA decision, Michigan law would revert to the ballot proposal language, which was never voted on by the people. Here’s what employers would need to do as a result:
- Sick Time – Under the ballot proposal language, all employees (full-time, part-time, temporary, and independent contractors) would be entitled to receive and use one hour of paid medical leave for every 30 hours worked, up to 72 hours per year. (Small businesses with less than 10 employees would be required to grant 40 hours paid leave, 32 hours unpaid.) It would require for this time to be separated from other PTO banks and places severe compliance burdens on employers, including those with paid leave policies currently in place. It limits the ability of employers to exercise notification procedures and require doctor’s notes and allows time to be used in as little as six-minute increments.
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- By contrast, Michigan’s existing Paid Medical Leave Act only applies to businesses with 50 or more employees and contains more reasonable and workable provisions.
- Minimum Wage – Under the ballot proposal language, Michigan’s minimum wage would jump to approximately $13 per hour in 2024 for both tipped and hourly workers.
- By contrast, Michigan’s minimum wage rate is currently $10.10 per hour (and is increasingly annually until we reach $12). Employers using tipped employees must pay them at least 38% of the full minimum wage ($3.84 an hour) and may take a “tip credit” of up to $6.26 an hour — so long as the employee makes at least $10.10 an hour with tips. If not, the employer must pay the difference.
Questions?: Contact Wendy Block at wblock@michamber.com.