By Mickey Chichester, Stephanie Mills-Gallan, and Sebastian Chilco on
February 24, 2025
- Michigan changed its minimum wage rate and updated schedule changes
- Tip credit’s eventual elimination undone, but tip credit gradually increases to 50% of minimum wage
- Multiple paid sick leave revisions seek to make leaves administration less challenging
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On February 21, 2025, Governor Gretchen Whitmer signed Senate Bill 8 and House Bill 4002, which, effective immediately, revise minimum wage, tip, and paid sick leave standards Michigan employers were expecting to take effect that day due to a July 2024 Michigan Supreme Court decision. Notably, the state labor department has already revised its FAQs concerning paid sick leave and its FAQs concerning minimum wage and tips.
Brief Recap of How We Got Here: In 2018, rather than sending the issue to the voters, the Michigan legislature adopted as law two proposed ballot measures concerning the minimum wage, tips, and paid sick leave. During a lame-duck session that year, however, legislators repealed both laws and replaced them with different laws with different standards. After many years of litigation, in July 2024 the Michigan Supreme Court found that the legislature acted unconstitutionally, revived the originally enacted laws, and said the standards that were originally proposed would be “the” law starting on February 21, 2025. Additionally, via a separate opinion, the court addressed how the state would adjust the minimum wage...
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