In a landmark decision, the Michigan Supreme Court has reinstated the original versions of both the Improved Workforce Opportunity Wage Act and the Earned Sick Time Act, overturning past legislative amendments. Employers in Michigan must prepare for compliance with these laws by February 21, 2025.
Highlights
The Michigan Supreme Court ruled in a 4-3 decision that the Michigan Legislature violated the Michigan Constitution by adopting and amending the paid sick leave and minimum wage laws. This decision reinstates the original laws, requiring compliance by employers by February 21, 2025.
Decisions of the Court of Claims and Court of Appeals
The Michigan legislature's attempts to amend the paid sick leave and minimum wage laws were deemed unconstitutional. The Supreme Court's ruling follows a lengthy saga involving advocacy groups and various court decisions leading up to this monumental decision.
Restoration of the WOWA and Immediate Adjustments for Inflation
The Supreme Court reaffirmed a gradual increase in the minimum wage, which is set to rise from $10 to adjust for inflation. Notably, the changes will impact wages set to take effect in 2025 by accounting for inflation since 2019.
Repeal of the PMLA and Return of the ESTA’s Expansive Paid Sick Leave
The court's ruling invalidated the Paid Medical Leave Act and reinstated the Earned Sick Time Act, which mandates 72 hours of sick leave for large employers and a combination of paid and unpaid leave for smaller employers.
Key Takeaways
The reinstatement of the WOWA and ESTA signifies considerable changes for Michigan employers. As businesses prepare for compliance, they must expect significant employer obligations related to wage increases and paid sick leave requirements.
