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Ruling on Minimum Wage and Paid Medical Leave
Wage & Hour Statement Regarding Impact of Court of Claims Ruling on Minimum Wage and Paid Medical Leave
On July 19, 2022, the Michigan Court of Claims issued a decision that voided the as amended versions of the Michigan Improved Workforce Opportunity Wage Act, MCL 408.931 et seq. and the Michigan Paid Medical Leave Act MCL 408.961 et seq. (the amended version changed the name in the 2018 initiative from Earned Sick Time Act).
This decision as it stands would increase the current minimum wage in Michigan as well as expand the eligibility, accrual, and use of paid sick leave, among other benefits for Michigan’s working people. This will mean changes for businesses, and they will need to determine how to comply.
On July 29, 2022, the Court of Claims entered an order staying the effect of this decision until February 19, 2023, to give employers and the relevant state agencies time to accommodate the changes required by the ruling.
Pending final resolution of the appeal, and lifting of the stay, under the potential implementation of the originally adopted petition, the minimum wage rates for 2023 would be:
- Michigan Minimum Wage Rate: $13.03
- The 85% rate for minors aged 16 and 17: $11.08
- Tipped employees would be eligible for 90% of the full minimum wage: $11.73
- The training wage of $4.25 per hour for newly hired employees ages 16 to 19 as a training wage for their first 90 days of employment remains unchanged.
We understand residents want clarity on these issues, but this litigation is fluid, and we will update this webpage accordingly as the situation continues to develop.
For updated Court Of Claims information visit the case information page.