
After Years of Legislative Maneuvering and Judicial Wrangling, Michigan’s Higher Minimum Wage Is Finally Here
After several years and rounds of legislative and judicial wrangling, as discussed below, Michigan’s minimum wage increased to $10.56/hr. on Jan. 1, 2025, and will quickly rise again on Feb. 21, 2025 to $12.48/hr. It will continue rising in phases over the coming years.
“Adopt and Amend” Approach Found Unconstitutional
The long road to Michigan’s new minimum wage began in 2018 when Michigan voters approved two ballot initiatives: the Improved Workforce Opportunity Wage Act (IWOWA), which proposed raising the minimum wage and gradually eliminating the tip credit, and the Earned Sick Time Act, which would establish mandatory paid medical leave.
Once the initiatives passed, Michigan’s Constitution gave the legislature three options: adopt the initiatives as presented, reject the initiatives but place them on the general election ballot, or propose alternatives to the initiatives’ proposed language and place both the alternative and original proposals on the general election ballot.
After receiving the petitions, the legislature voted in September 2018 to adopt both into law as they appeared on the ballot. However, following the November 2018 general election, the lame-duck legislature voted to amend the laws in a manner that dramatically altered and virtually eliminated the changes voters sought through the initiative process.
Soon thereafter, the initiatives’ supporters filed a lawsuit arguing that the legislature’s “adopt and amend” approach was unconstitutional because it was not one of the options set forth in the state constitution.
In 2022, the Court of Claims held in Mothering Justice v. Attorney General that the “adopt and amend” maneuver violated Michigan’s constitutional protections for the right of initiative. In 2023, the Michigan Court of Appeals reversed, taking the view that once the initiative proposals were enacted into law, they were “on the same footing as any other legislation passed by the Legislature … meaning they are subject to amendment at any time[.]” The plaintiffs then appealed to the Michigan Supreme Court.
In a 4-3 decision, the Court held on July 31, 2024, that the Michigan Constitution does not allow the legislature to reject an initiative without sending it to the voters. The opinion drew upon the text, structure, history, and spirit of the constitution’s initiative provision as support for its holding. In reaching its conclusion, however, the Court found that the legislature did not violate the Michigan Constitution when it adopted the original initiatives. Therefore, the Court held that the ballot proposals as originally adopted by the legislature (prior to the amendment) must take effect.
As a result, the original versions of the IWOWA and Earned Sick Time Act become effective on Feb. 21, 2025. Given the almost six-year delay between passing the initiative and resolving the litigation, the Court restored an accelerated minimum hourly wage and tip credit schedule, which can be found on the Michigan Department of Labor and Economic Opportunity’s website. If you have any questions about Michigan’s new minimum wage, please contact Alana Karbal at Sommers Schwartz today.