August 02, 2022

Update: Michigan Court Stays Decision to Reinstitute Higher Minimum Wage and More Generous Paid Sick Time Laws

Recently, we issued an alert explaining that, on July 19, 2022, the Michigan Court of Claims ruled that the “adopt-and-amend” strategy the Michigan Legislature used in 2019 to enact more business-friendly minimum wage and paid sick time laws was unconstitutional. The court also reinstituted the prior versions of these laws which meant Michigan employers were immediately subject to the more generous Earned Sick Time Act and the higher $12 per hour minimum wage for most employees.  

However, on July 29, 2022, the same court issued a stay of its ruling through February 19, 2023 to allow employers and the relevant state agencies time to comply with and enforce the original, reinstituted laws. Accordingly, as of the writing of this alert, employers have until February 19, 2023 to comply with the Earned Sick Time Act (which requires more paid sick time than the now-stricken Michigan Paid Medical Leave Act) and provide at least a $12 per hour minimum wage for non-tipped employees, unless an appellate court or the Michigan Legislature acts before February 19. For instance, the plaintiffs may appeal the stay. If an appellate court lifts the stay, employers will be required to comply with the original laws, even before February 19. On the other hand, it is also possible that an appeals court could overturn the decision to reinstitute the original laws, or the Legislature could adopt new laws that impose requirements similar to the minimum wage and paid sick time laws the court struck down. 

Michigan employers with questions are encouraged to contact the authors or their Faegre Drinker employment counsel. 

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