On July 19, the Michigan Court of Claims issued a decision restoring two significant Michigan employment laws – the Earned Sick Time Act (“ESTA”) and the Improved Workforce Opportunity Wage Act (“IWOWA”). The decision has significant implications for Michigan employers, as discussed below.
As background, in 2018, two groups circulated ballot initiative petitions seeking to enact legislation that would grant mandatory employer paid leave benefits (ESTA) and incremental minimum wage increases (IWOWA). After collecting sufficient signatures, the groups submitted the initiatives to the Michigan Legislature in accordance with the Michigan Constitution. The Michigan Legislature enacted both the paid sick leave and minimum wage initiatives and then immediately amended them, revising key provisions in the process. In amending the laws, the Legislature also changed the name of the ESTA to the Paid Medical Leave Act (“PMLA”). The petitions’ sponsors challenged the Legislature’s actions in the Michigan Court of Claims.
The Michigan Court of Claims ruled on July 19 that the Legislature’s “adopt and amend” strategy violated the plain language of Michigan’s Constitution and undermined Michigan voters. The Court of Claims voided the amendments for “thwart[ing] the power of the People to initiate laws and then vote on those same laws.” The effect of the Court of Claims’ decision was to allow the original ballot initiatives – that is the ESTA and the unamended version of the IWOWA – to...
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https://www.jdsupra.com/legalnews/michigan-court-of-claims-restores-laws-6443...