27 Jan MICHIGAN COURT OF APPEALS HALTS PENDING FEBRUARY 20, 2023, INCREASES TO MINIMUM WAGE AND PAID SICK LEAVE
Today, January 26, 2023, the Michigan Court of Appeals ruled that the Michigan Legislature’s 2018 decision to adopt and then amend two ballot initiatives during the same legislative session did not violate the Michigan Constitution. As originally adopted, the two ballot initiatives, the Improved Workforce Opportunity Wage Act (the “IWOWA”) and the Earned Sick Time Act (the “ESTA”), sought to raise the state minimum wage and require employers to provide up to 72 hours of paid sick leave per year, respectively.
The Michigan Court of Appeals’ ruling overturns a lower court’s decision which would have enforced the IWOWA and ESTA’s requirements, as originally adopted, beginning on February 20, 2023. This means that employers can continue their current minimum wage and paid sick leave practices and do not need to make any changes on February 20, 2023.
For now, the Court of Appeals ruling relieves employers of having to make changes to their minimum wage and sick leave policies. The case, however, will likely be appealed to the Michigan Supreme Court. Masud Labor Law Group will continue to monitor the case going forward. In the meantime, employers seeking more information should contact us with any questions.