Sandy K. Baruah President and Chief Executive Officer at Detroit Regional Chamber | LinkedIn
Sandy K. Baruah President and Chief Executive Officer at Detroit Regional Chamber | LinkedIn
On Wednesday, July 31, the Michigan Supreme Court ruled that the Michigan legislature took an unconstitutional action by weakening two voter-proposed initiatives aimed at raising the minimum wage and requiring paid sick leave for virtually every employee in Michigan.
The ballot measures from 2018 proposed increasing the minimum wage in Michigan to $12 per hour by 2022, aligning the tipped minimum wage with the non-tipped minimum wage by 2024, and expanding paid sick leave requirements to include all businesses.
Instead of allowing these proposals to be put on the ballot, the legislature employed a tactic known as “adopt and amend.” This approach involved adopting the proposal—which removed it from the ballot—and then amending it.
Through "adopt and amend," legislators altered the minimum wage increase to $12.05 an hour by 2030 and reduced mandatory sick days from 72 hours to 40 hours. The Supreme Court deemed this action unconstitutional.
“The Detroit Regional Chamber supported the Legislature’s action in 2018 and is disappointed by the decision of the Supreme Court,” said Sandy K. Baruah, President and Chief Executive Officer of the Chamber. “Given the impact of inflation on our economy, we must find the right balance between wages, benefits, and business competitiveness. The Michigan Legislature must review the Court’s decision and work with all impacted parties to find a solution that allows Michigan to grow. We stand ready to be part of these discussions.”
The Chamber will continue monitoring this issue.