On Thursday, January 26, the Michigan Court of Appeals overturned a ruling from a lower court that would have boosted the state’s minimum wage even higher than increases already enacted at the start of the year. In a 3-0 ruling, the court determined that the state legislature did have legal standing to “adopt and amend” voter-led petitions that sought to reform the state’s minimum wage and sick leave policies. This ruling reversed the previous court’s decision, which would have required Michigan businesses to change their wage schedules and paid time off (PTO) policies before February 19, 2023.
The court’s ruling means the minimum wage in Michigan will not increase from the new rates enacted at the beginning of 2023. Minimum wage rates will remain at $10.10/hour for hourly workers and $3.84/hour for workers who receive tips. The legal battle, which began in 2018, is next expected to be appealed to the Michigan Supreme Court.
Your Cole Gavlas advisors are continuing to monitor developments on this ruling and will share them as they arise.