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Ruling on Minimum Wage and Paid Medical Leave
Wage & Hour Update Regarding Litigation 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 would have increased the current minimum wage in Michigan and expanded the eligibility, accrual, and use of paid sick leave. The Court of Claims stayed 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.
On January 26, 2023, the Michigan Court of Appeals reversed the Court of Claims’ July decision and ruled the amended versions of these statutes are valid and enforceable. This Court of Appeals decision means there is no change to the current minimum wage and paid medical leave laws, and the Wage & Hour Division will continue enforcing these standards as it has since their enactment. Click here for more information on the current minimum wage, or here for information on the current paid medical leave act.
The recent Court of Appeal decision issued on January 26,2023 has been appealed to the Michigan Supreme Court on February 10, 2023. MSC heard oral arguments on December 7, 2023, and has not yet issued a decision.
We understand residents want clarity on these issues, so we have sought to update this webpage as the situation develops.