Created Equal: How Michigan Supreme Court’s ruling on minimum wage, sick leave will affect workers and businesses

An open for business sign hanging on the door.

Legislative Republicans’ actions to halt the implementation of minimum wage increases and paid sick leave in 2018 was ruled unconstitutional by the Michigan Supreme Court. On July 31, Mothering Justice v. Attorney General ruled the actions of the Republican party “violated the people’s constitutionally guaranteed right to propose and enact laws.”

This ruling ensures the original language of the Improved Workforce Opportunity Wage Act (IWOWA) and the Earned Sick Time Act (ESTA) are implemented over the current versions — which were modified in the November 2018 general election.

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By implementing the original language of the IWOWA, Michigan’s $10.33 minimum wage will climb above $12 by February 2025 — and it will be at $15 an hour by 2029. To account for inflation, it will ensure hourly wages are proportionately adjusted as they are implemented. Further, the minimum wage for tipped workers, which is $3.93 an hour, will be phased out by February 2029.

Additionally, the original language of the ESTA ensures up to 72 hours of paid sick leave per year for Michigan workers. All Michigan employers must provide this leave, meaning all employees are eligible.

Today on Created Equal, host Stephen Henderson talked to Danielle Atkinson, an advocate whose work focuses on promoting economic fairness in Michigan, and Brian Calley, the head of Small Business Association of Michigan, which has said the new rules could cost them money — and cost Michiganders jobs.

Guests

Danielle Atkinson is the founder and national director of Mothering Justice, a nonprofit that advocates for policy to support mothers of color. She says this law is beneficial because most Michiganders don’t have access to paid time off for caregiving or for themselves — and deciding between health and paying their bills isn’t fair.

“Seventy percent of voters say that they are in favor of this [legislation]. The reason why they say they’re in favor is because they need it — they don’t have access to a single paid sick day,” Atkinson said. “[This] means they’re making the choice between going to work sick or paying their bills, putting public health in jeopardy, [and] not being there for themselves or their loved ones.”

Brian Calley is the CEO of the Small Business Association of Michigan. He is concerned for Michigan workers, because those who already get a lot of time off may get less with the new ruling. 

“It imposes a one size fits all, which might help some people who had less than this or didn’t have anything at all. But it has also the potential to remove flexibility and to to also…remove the amount of time that [employees] have off today — especially if they don’t normally have sick days,” Calley said.

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