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Sunday, April 26, 2026

Michigan: Minimum Wage and Paid Sick Time - Significant Changes ... - Lexology

Written By Masud Labor Law

In 2018, Michigan special interest groups began gathering signatures for two ballot initiatives, the Improved Workforce Opportunity Wage Act (the “IWOWA”) and the Earned Sick Time Act (the “ESTA”). The IWOWA sought to raise the minimum wage, whereas the ESTA sought to provide employees of businesses with 10 or more employees with 72 hours of paid sick leave per year, and employees of businesses with 1 to 9 employees with 40 hours of paid sick leave per year.

After being certified as having obtained a sufficient number of signatures, the ballot initiatives were submitted to the Legislature. The Legislature adopted and amended both ballot initiatives. In doing so, the ESTA became the Paid Medical Leave Act (the “PMLA”), which required employers with 50 or more employees to provide certain employees with at least 40 hours of paid sick leave per year. The IWOWA was adopted without its name being changed, but the Legislature amended the initiative to slowdown the rate at which the minimum wage would increase.

The Legislature’s adoption and amendment of the two ballot initiatives was immediately challenged by the special interest groups who claim that the Legislature’s actions violated the Michigan Constitution. On July 19, 2022, the Court of Claims heard the challenge, and ruled in favor of the special interest groups by holding that the Legislature lacked the authority to amend the ballot initiatives and, therefore, the initiatives as originally...



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