On July 19, 2022, the Michigan Court of Claims reinstated Michigan’s original (2018) voter-initiated versions of the Improved Workforce Opportunity Wage Act (IWOWA) and the Earned Sick Time Act (ESTA). This reversion immediately increases Michigan’s minimum wage rate to $12 per hour and significantly expands the paid sick leave employers must provide to eligible employees.
This recent pivot will likely catch some employers by surprise. While appeals and legal challenges to the ruling are likely, employers may want to pay close attention to the expanded employee rights to paid leave under Michigan law.
On July 19, 2022, the Michigan Court of Claims, in Mothering Justice v. Nessel, held that the “adopt-and-amend” strategy the Michigan Legislature used to enact an amended version of the Improved Workforce Opportunity Wage Act (2018 Public Act (PA) 368) and the Paid Medical Leave Act (2018 PA 369) (PMLA) was unconstitutional.
Both acts originated as ballot initiatives in the summer of 2018. The IWOWA proposal increased the minimum hourly wage to $12 by January 1, 2022. The ESTA proposal, which ultimately led to paid sick leave under the PMLA, required most employers to provide Michigan employees with seventy-two hours of annual paid sick leave for many types of absences (illnesses and injuries; care for themselves and family members; domestic violence, sexual assault; and certain business and school closures). Prior to the November 2018 election, the Michigan...
; ; ; agreed to pay $17.07 million to settle federal allegations of illegal diversity, equity and inclusion (DEI) hiring practices on Friday, marking the Justice Department's first resolution unde...