Michigan Supreme Court Brings Back Higher Minimum Wage, Paid Leave Laws
In a landmark decision, the Michigan Supreme Court has reinstated robust minimum wage and paid leave laws that were initially approved by voters through a ballot initiative six years ago. This ruling effectively counters attempts by Republican lawmakers to dilute these measures, ensuring that the original intent of the voters is upheld.
The court's decision means that Michigan's minimum wage is set to increase to over $12 next year and will continue to rise annually in line with inflation. Additionally, the state will phase out the "tipped" minimum wage, which allowed employers in sectors like restaurants to pay workers less if they received gratuities. This change is a significant victory for worker advocacy groups, including One Fair Wage, which has long campaigned for the abolition of the tipped minimum wage.
Moreover, the ruling mandates that paid sick leave, which allows workers to earn an hour of paid leave for every 30 hours worked, will now apply to all employers across the state, including small businesses. This provision was significantly weakened by Republican lawmakers in 2018, who exempted employers with 50 or fewer employees and imposed stricter caps on accrued and used leave time.
The original laws were set to be enacted through a ballot initiative in 2018, but Republican majorities in the statehouse adopted and then amended these measures to appease business groups, a maneuver known as "adopt and amend." This tactic was deemed unconstitutional by the court, which found it to be a violation of the people's right to propose and enact laws through the initiative process under the state constitution.
In the court's opinion, authored by Justice Elizabeth M. Welch, the four Democratic justices emphasized that the Republican-led efforts to weaken the ballot initiatives were unconstitutional. The court's three Republican justices dissented, highlighting the partisan divide on the issue.
Saru Jayaraman, president of One Fair Wage, expressed jubilation at the court's ruling, stating, "We have finally prevailed over the corporate interests who tried everything they could to prevent all workers, including restaurant workers, from being paid a full, fair wage with tips on top."
Given the lengthy legal battle, the court had to address the fact that the scheduled increases in the original proposal were outdated. Consequently, the court decided to make the law effective from next February, with the scheduled increases adjusted according to inflation. The justices clarified that employers could not be held accountable for following the weaker measures that Republicans attempted to institute, noting that "the Legislature, not employers, was responsible for the constitutional mischief known as adopt-and-amend."
This ruling is a significant victory for worker rights and advocacy groups, ensuring that the will of the people is respected and that workers in Michigan will enjoy improved wages and benefits as intended by the original ballot initiatives.