A Michigan court recently held that the current versions of the state’s minimum wage and paid sick leave statutes are unconstitutional due to legislative foul play, immediately voiding the existing laws. Mothering Justice v. Nessel, No. 21-000095-MM (July 19, 2022). Now, absent a stay pending appeal or further legislative action, the original form of the laws—which had a far broader scope—will take effect, leaving most employers’ current policies noncompliant.
Background
In 2018, facing dual ballot initiatives regarding minimum wage and paid sick leave, the Michigan legislature quickly enacted the proposed legislation in order to maintain control over the process. Before the legislation took effect, the legislature approved amendments that significantly revised key provisions.
The amendment to the minimum wage law delayed the increase to $12-per-hour from 2022 to 2030, removed additional inflation-based increases, and eliminated provisions regarding tipped employees.
With respect to paid sick leave, the amendments created an exemption for employers of fewer than 50 employees, excluded FLSA exempt employees, reduced the rate of accrual, reduced the annual leave requirement from 72 hours to 40 hours for large employers, added a frontloading option, narrowed the permissible reasons for leave, and eliminated an antiretaliation provision.
The Legal Challenge
After a group of employee advocates filed suit challenging this “adopt and amend” strategy, the Michigan Court of Claims...
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