Indianapolis, Ind. (January 11, 2023) – 2022 was an exciting year for labor and employment law in the state of Michigan. The minimum wage was increased, but a key court ruling cleared the way for possible significant further expansion of the state's minimum wage and sick leave laws. Conversely, it was a quiet year for Michigan's neighbor, Indiana, when it came to developments in labor and employment law. Following 2021, which saw Indiana implement several important changes to labor and employment law, the Hoosier State only brought one significant change in 2022 – a limit on employer COVID-19 vaccination mandates.

Michigan Labor & Employment Law Updates

Minimum Wage Increase

On January 1, 2023, Michigan's minimum wage increased to $10.10 per hour from $9.87 per hour. The minimum wage for tipped employees also increased, to $3.84 per hour and, for employees ages 16 and 17, to $8.59 per hour.

Court of Claims Decision Will Likely Increase Minimum Wage, Sick Leave in 2023

However, on July 19, 2022, the Michigan Court of Claims ruled that the Improved Workforce Opportunity Wage Act (IWOWA) and the Earned Sick Time Act (ESTA) were unconstitutionally amended by the legislature after broader versions of both laws were passed in ballot initiatives. The court reinstated the broader versions of both laws, but issued a stay until February 20, 2023 so employers can adapt to the changes. Absent additional court action, employers will be required to comply with the laws as initially...

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