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Minimum Wage and Paid Sick Leave Take Effect, Supreme Court To Hold Hearings on ‘Adopt and Amend’

Michigan’s new minimum wage and paid sick leave laws have taken effect. Member companies are encouraged to carefully review the new laws to ensure they are in compliance.

Minimum Wage

  • Effective today, the minimum wage has increased to $9.45. The minimum wage will increase again in 2020 to $9.65, and will continue to increase annually until ultimately reaching $12.05 an hour in 2030.
  • The minimum wage for tipped employees remains 38 percent of the minimum wage, resulting in a four cent increase an hour.
  • Employers are only required to pay minors 16 to 17-years-old 85 percent of the minimum wage rate, increasing from $7.86 an hour to $8.03 an hour.

Paid Sick Leave

  • The newly adopted paid sick leave law generally provides for workers to receive one hour of sick time for every 35 hours worked up to a maximum of 40 hours a year. The new law only applies to businesses who employ 50 or more employees, as defined by the statute.
  • Review a detailed FAQ released by the Department of Licensing and Regulatory Affairs.

‘Adopt and Amend’ Strategy Undergoing Review – What Happens Next?
After successfully advocating for amendments to the original petition language late last year, the Detroit Regional Chamber has been working diligently as part of the Small Business for a Better Michigan Coalition to ensure these new requirements continue to adequately address the needs of small businesses across the state.

Request for Supreme Court to Weigh In
In January, Sen. Stephanie Chang asked Attorney General Dana Nessel to issue an advisory opinion on the constitutionality of the “adopt and amend” process used to pass the legislative amendments to the adopted proposals. In response, the Michigan Legislature has requested the Michigan Supreme Court to weigh in on the issue and the attorney general has stated she will hold off on releasing her own opinion until the Supreme Court responds to the Legislature’s request.

Supreme Court to Hold Hearings
The Supreme Court weighed in and announced it will hold oral arguments in July on the requests from the House and Senate for an advisory opinion regarding the constitutionality of the “adopt and amend” strategy used on both the Minimum Wage and Paid Sick Leave laws.
The Chamber will continue to support the adopted amendments in order to maintain Michigan’s competitive business environment and will keep members updated as the process continues.