On January 26, 2023, a three-judge panel of the Michigan Court of Appeals issued a ruling regarding Michigan’s minimum wage, tip, and paid sick and safe time laws. In 2018 the Michigan state legislature overhauled revisions to Michigan’s minimum wage and tip law and its newly created paid sick and safe time law only months after it had adopted two proposed ballot measures covering these topics. In July of 2022, the Michigan Court of Claims found that the state legislature had violated the Michigan Constitution by its 2018 actions. Now, the Michigan Court of Appeals has reversed that finding by the Court of Claims. It is possible, however, that this latest decision could be appealed to the Michigan Supreme Court.
The appellate court decision means that the versions of these laws drafted by the legislature – not ballot measure proponents – remain “the” law in Michigan. Accordingly, the minimum wage for non-exempt employees continues to be $10.10 per hour; for tipped employees, the minimum cash wage is $3.84 and the maximum tip credit is $6.26. Also, employers with 50 or more U.S. employees must still allow employees to accrue 1 hour of paid leave for every 35 hours worked, accrue up to 40 hours of paid leave per year, carry over up to 40 hours of unused paid leave into the following year, and use up to 40 hours each year for various “sick,” “safe,” or “other” reasons. Alternatively, employers could frontload 40 hours of paid leave at the beginning of each year.
During the...
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