Increased Minimum Wage, Expanded Sick Leave Temporarily Delayed in Michigan

Last month, the Michigan Court of Claims invalidated the State’s current laws regarding minimum wage and sick leave. As we noted in an earlier alert, the fallout from this ruling could equate to a significant increase in the minimum wage (from $9.87 to $12.00 per hour) and paid sick leave obligations (from 40 to 72 hours per year) for employers in Michigan.

The same court has now issued a temporary stay, delaying enforcement of the expanded minimum wage and sick leave obligations until February 20, 2023. While the State had moved to completely stay enforcement pending appeal of the underlying judgment, the court denied that motion, noting that the State is unlikely to prevail on the merits. Instead, the court issued its own temporary stay, acknowledging that it will take time for employers to accommodate the changes required under the original ballot initiatives. Thus, absent a further stay issued by the Court of Appeals, a judgment overturning the original decision, or further action from the legislature, the original ballot initiatives will take effect on February 21, 2023.

Benesch will continue to monitor the situation as the appeals process unfolds. For more information, please contact a member of Benesch’s Labor & Employment Practice Group.

Adam Primm at aprimm@beneschlaw.com or 216.363.4451.