Chamber Town Hall: Next Steps on Minimum Wage and Earned Sick Time

What’s Happening: Join the Michigan Chamber and its Chamber Partners from across the state for a Michigan Business Town Hall meeting on the recent Michigan Supreme Court ruling on minimum wage and sick time.
 
When: Wednesday, August 28 from 9 to 10 a.m.
 
Why it Matters: We will discuss the decision, the effort to advance legislation addressing harmful components and how employers can help advocate for a fix.
 
Agenda:

• Overview of the Decision
  • Significant items and timeline
• Legislative Update & Strategy
• Advocacy Next Steps
  • How your organization/company can help

 
Background: The Michigan Supreme Court’s in the Mothering Justice case marks a major change in Michigan’s labor laws, requiring employers to change their policies and procedures. As businesses brace for higher labor costs and new challenges, we will work with legislators to lessen the impact and support a smoother transition for all affected industries. Members of the Michigan House and Senate must come together to pass practical and commonsense legislation to lessen the harm of the Court’s decision on paid leave and minimum wage.
 
Earned Sick Time Act:

• Applies to all employers with one or more employees.
• All employees, including part-time and seasonal, must receive one hour of paid medical leave for every 30 hours worked, up to 72 hours annually. 
• Employers need to rethink paid time off (PTO) policies, notice requirements and documentation, while guarding against potential new litigation.

 
The Wage Act:

• Minimum wage increases based on state treasurer’s inflation adjustment. 
• The “tip credit” is eliminated, requiring tipped workers to be paid the full minimum wage, with tips as additional income.
• Significant financial adjustments for the hospitality and service industries, with labor costs potentially increasing 250%.

 
Timeline:

• November 1, 2024: State Treasurer determines inflation adjustment for minimum wage. 
• February 21, 2025: The Earned Sick Time Act and Wage Act take effect.
  • Minimum hourly wage adjusted to $10 plus the state treasurer’s inflation adjustment AND tip credit increased to 48% of minimum wage. 
• February 21, 2026: Minimum hourly wage adjusted to $10.65 plus the state treasurer’s inflation adjustment AND tip credit increased to 60% of minimum wage. 
• February 21, 2027: Minimum hourly wage adjusted to $11.35 plus the state treasurer’s inflation adjustment AND tip credit increased to 70% of minimum wage. 
• February 21, 2028: Minimum hourly wage adjusted to $12.00 plus the state treasurer’s inflation adjustment AND tip credit increased to 80% of minimum wage. 
• February 21, 2029 (and after): Minimum hourly wage adjusted to inflation-adjusted minimum wage AND tip credit no longer exists (100% of minimum wage).