LANSING, Mich. (Michigan News Source) — The Michigan Supreme Court’s recent ruling, which reinstated two ballot initiatives related to the state’s minimum wage and paid sick leave, has left state departments and businesses scrambling for clarity on how to proceed, particularly regarding how inflation should be factored into the scheduled wage increases.
In response, the Michigan department of Treasury and the Michigan department of Labor and Economic Opportunity have proposed a plan that would incrementally raise the minimum wage from $12.48 in 2025 to $14.97 by 2028, with further increases tied to inflation. Currently, Michigan’s minimum wage is $10.33 per hour.
However, the language of the court’s order has left room for multiple interpretations, some of which could inadvertently result in a lower minimum wage—an outcome that neither workers nor lawmakers anticipated.
“Respectfully, the Michigan Department of Treasury has read this Court’s opinion in earnest and believes there exist ambiguities as to how to interpret and implement this Court’s directives in accounting for inflation for the graduated wages for the 2025 through 2028 time period,” Attorney General Dana Nessel’s office wrote on August 22.
The departments requested a response by Sept. 15, emphasizing that “the answer is essential in order for the State to faithfully implement this Court’s dictates and avoid unnecessary litigation.”
In the meantime, Michigan businesses, especially small businesses and those in the restaurant industry, face their own set of challenges. The Small Business Association of Michigan and various business owners have already voiced concerns about the financial burden of these wage increases, according to MLive. They argue that without legislative adjustments, the mandated wage hikes could lead to increased operational costs, potentially resulting in layoffs, reduced hours, or even closures.
These concerns have fueled calls for the state legislature to intervene and modify the court’s plan, aiming to strike a balance between fair wages for workers and the financial health of businesses.
Leave a Comment
COMMENTS POLICY: We have no tolerance for messages of violence, racism, vulgarity, obscenity or other such discourteous behavior. Thank you for contributing to a respectful and useful online dialogue.