Over a week after Michigan Court of Claims Judge Douglas Shapiro ruled Michigan businesses to increase the minimum wage to $12 per hour and offer paid sick leave to workers, he put a pause on the implementation until Feb. 2023 while the case is under appeal.

In his July 19, 2022, ruling, Shapiro determined Michigan lawmakers violated the state Constitution in 2018 when they approved citizen-driven initiatives on minimum wage and paid sick leave, but went on to weaken the language within two months. The initiatives intended to raise the minimum wage from $10 in 2019 to $12 in 2022, but lawmakers “watered down” the law, preventing the minimum from reaching $12 until 2030. Additionally, they weakened the paid sick initiative, exempting businesses with 50 or fewer workers from requiring paid sick leave.

Since the July 19 ruling is under appeal, Shapiro stated that delaying the implementation of the new rate and paid sick leave would cause “irreparable harm” to employees across Michigan. However, he also considered “the ability of employers and the relevant state agencies to immediately accommodate the changes” to the state law, and on July 29, 2022, he deferred enforcement until Feb. 2023.

Michigan’s hospitality business owners welcomed Shapiro’s decision to pause the implementation, with President and CEO of Michigan Restaurant and Lodging Association, Justin Winslow, stating it ”successfully prevented the immediate economic decimation of full-service restaurants.” Winslow’s organization represents the state’s $40 billion hospitality industry, and previously argued the immediate increase of minimum wage could further harm an “already battered” industry “during peak travel season.” 

Stay Tuned

As we wait for the results of the appeal, it’s important to consider how the increased minimum wage and paid sick leave offering may impact your business. DM Payroll Solutions makes updating pay and managing employee sick time a breeze – contact us today to get a plan in place for the future implementation.