Late Thursday, Governor Snyder signed the Minimum Wage law (SB 1171) that takes Michigan’s minimum wage to a maximum of $12.05/hr. in 2030 and removed the future indexing of the minimum wage to inflation. He also signed the Earned Sick Time law (SB 1175) that implements paid time off for employee or family member illness, injury, domestic violence, and sexual assault. The new law applies to employers with over 50 employees.
These laws were originally slated to go to popular vote in November. The original ballot initiatives were very expensive and administratively burdensome and would have applied to very small employers. Micro employers would have had to find a way to pay for, in the case of the paid time off law, the most generous PTO law in the country. Michigan’s legislature interceded by passing the laws legislatively with the intent of amending them during this legislative session. They have accomplished this change so far.
The laws will go into effect 90 days after the close of the session at the end of this month. Going forward it is expected these laws will be challenged in court as unconstitutionally passed.
A Hot Button Briefing on these new Michigan laws will be held Monday, December 17th at ASE from 9:00 a.m.-11:00 a.m. There are still seats available. ASE members can also join the Hot Button Briefing scheduled at Delta College this coming Wednesday, December 19th.