On January 26, 2023, a Michigan appellate court panel in Mothering Justice v. Attorney General issued a ruling to halt changes to the State’s paid sick leave law and an increase to the State’s minimum wage for hourly workers that were set to go into effect on February 19, 2023. The ruling is the latest development in a saga that has been ongoing for more than four years.
As we’ve previously reported, in 2018, the Michigan legislature adopted two significant voter initiatives: the Improved Workforce Opportunity Wage Act (IWOWA), which increased the State’s minimum wage to $12 an hour by 2022 (and provided for annual inflation increases thereafter), and the Earned Sick Time Act (ESTA), which mandated employers to provide up to 72 hours of paid sick time per year for various types of absences. Before they took effect, however, the legislature amended the voter initiatives in several significant ways. First, the legislature renamed the ESTA the Paid Medical Leave Act (PMLA) and modified the law to: (1) apply only to employers with 50 or more employees; (2) reduce paid annual leave benefits from 72 hours to 40 hours; (3) permit employers to frontload annual paid leave benefits; (4) remove anti-retaliation provisions; and (5) remove an individual’s private cause of action. Second, the legislature amended the IWOWA to increase the minimum wage to $12 an hour by 2030, instead of 2022, remove the additional annual inflation increases, and eliminate the tip credit set to take...
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