The Michigan Department of Labor and Economic Opportunity (LEO) has provided guidance on the upcoming changes to the state’s minimum wage rates in light of the Michigan Court of Claims decision in Mothering Justice v. Nessel, No. 21-000095-MM (July 19, 2022).
In Mothering Justice, the Court of Claims held that the state legislature violated the Michigan Constitution in 2018 when it enacted, and within the same legislative session amended, two ballot initiatives, one to raise the minimum wage and the other to require employers to provide paid sick leave. As a result, the Court of Claims voided the amended laws adopted by the legislature and ordered reinstatement of the ballot initiatives as originally presented in 2018. (For further details on the events leading to the Court of Claims decision and the decision itself, see our articles, Michigan Court Voids State’s Minimum Wage and Paid Medical Leave Acts, Creating Compliance Limbo and Order Issuing Changes to Michigan Minimum Wage and Paid Sick Leave Law Stayed Until February 2023.)
On December 5, 2022, in its online guidance, the LEO announced that, effective January 1, 2023, the standard minimum wage will increase to $10.10 per hour and the minimum wage for tipped employees will increase to $3.84. These rate increases were set forth in the 2018 amendments enacted by the legislature and, because the Court of Claims stayed enforcement of its decision until February 19, 2023, these rates will go...
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