Hello!

Yesterday (September 19^th), The Supreme Court Issued an order clarifying details relating to the reinstated Wage Act. These are clarifications in response to requests submitted by the MI Dept of Treasury and others.

Note that the  opinion confirms $12.48 as a likely minimum wage amount for February 2025.

Copy of Supreme Court’s clarifying order:

https://www.courts.michigan.gov/4a6c1f/siteassets/case-documents/uploads/sct/public/orders/165325-2024-09-18-or.pdf

Please also note that other details of the new language is still awaiting clarification – especially certain aspects of the Earned Sick Time Act (ESTA).

Libraries preparing policies and adjusting budgets are strongly urged to contact their attorneys to ensure proper compliance.

More information and explanation of these changes will be forthcoming as available.

Thanks!

Clare

Clare D. Membiela, MLS, J.D.

Library Law Consultant

Library of Michigan

MembielaC@michigan.gov

517-335-8132

The research and resources above are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem.

“the State may not, consistently with the spirit of the First Amendment, contract the spectrum of available knowledge.” Griswold v. Connecticut, 381 U.S. 479, 482 (1965).

Get personalized voter information on early voting and other topics at Michigan.gov/Vote.

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From: gongwerreports@gongwer.com <gongwerreports@gongwer.com>
Sent: Wednesday, September 18, 2024 4:12 PM
To: updates@gongwer.com
Subject: Gongwer Alert--Supreme Court Clarifies Wage, Sick Time Act Effect Dates & Rates

Read Online

September 18, 2024

Gongwer Alert

Supreme Court Clarifies Wage, Sick Time Act Effect Dates & Rates

The Michigan Supreme Court today clarified how the state should move forward with a minimum wage increase plan.

In an order issued today, the high court majority in Mothering Justice v. Attorney General (MSC Docket No. 165325) noted the Department of Labor and Economic Opportunity's and the Department of Treasury's calculations for a new minimum wage phase in plan were on track.

The departments had asked for clarification on multiple issues, arguing there were different ways to calculate the inflation adjustment for the minimum wage and that the court missed a phase-in percentage on the tipped wage increase (See Gongwer Michigan Report, August 22, 2024).

Originally, the agencies had asked for the court to weigh in by September 15, but that date lapsed with no response. The justices were not bound to that deadline, however, and today issued clarifications of key footnotes in the opinion initially authored by Justice Elizabeth Welch.

Treasury is required to submit its wage increase figures by November 1.

Key in the order is how to calculate the inflation adjustment for the new minimum wage. The state presented several options but said Treasury believed the court intended for it to begin calculating inflation on January 1, 2019, through July 31, when the adopt and amend ruling was issued.

The department's calculations had the minimum wage increases at $12.48 in 2025, $13.29 in 2026, $14.16 in 2027 and $14.97 in 2028.

As to whether the state correctly interpreted the court's remedy in respect to inflation, the order said the state was correct.

"The defendants interpret the opinion as requiring that they 'bring the statutory minimum wages in Section 4(1) current to July 31, 2024, through an inflationary catch-up beginning January 1, 2019.' The defendants are correct," the order said.

Justice Elizabeth Welch wrote a concurring opinion detailing where the drafting confusion may have arisen, while Justice Brian Zahra wrote a dissenting opinion joined by Justice David Viviano.

The state in its filing also noted the original opinion in outlining the phase-in for the tipped wage skipped from 80 percent of the regular minimum wage in 2028 to 100 percent in 2029. The law, however, includes a 90 percent phase in.

The court agreed and said the tipped wage in fact would reach 100 percent of the regular minimum wage in 2030 rather than 2029 as it first wrote.

Gongwer News Service will have more on this story in today's Michigan Report.

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