Michigan Court Voids State’s Minimum Wage and Paid Medical Leave Acts, Creating Compliance Limbo

By Emily M. Petroski, Allan S. Rubin & Lauren V. Parrottino on July 26, 2022

Citing legislative “sleight of hand,” the Michigan Court of Claims has held that the Michigan legislature violated the state’s Constitution when, in 2018, it adopted and then immediately amended ballot initiatives to increase the state’s minimum wage and to require employer-paid sick leave. Mothering Justice v. Nessel, No. 21-000095-MM (July 19, 2022). Therefore, the court held, the current versions of the Improved Workforce Opportunity Wage Act (IWOWA) (the minimum wage law) and the Paid Medical Leave Act are void. As a result, Michigan’s minimum wage immediately may increase to $12.00 per hour (from its current $9.87 per hour) and the state’s paid sick leave law may expand substantially.