Legislative Battles Threaten Paid Sick Time, Wage Increases for Michigan Employees

In 2018, Michigan workers’ rights organizations spearheaded grassroots, boots-on-the-ground efforts to increase the state minimum wage and guarantee workers paid sick time. Volunteers canvassed the state, obtaining hundreds of thousands of voter signatures in support of the initiative that would become the Michigan Earned Sick Time Act.

One way for a citizen-proposed initiative to become Michigan law is to obtain approval from the legislature. On September 5, 2018, the Michigan Legislature adopted 2018 PA 338, the proposed Earned Sick Time Act. They approved the proposed initiative into law without making any changes or amendments, exactly as over 350,000 Michigan voters had approved with their signatures.

However, following the November 2018 elections, the Michigan Legislature significantly amended the provisions of 2018 PA 338 to drastically reduce its protections and scope before passing it into law. This altered version took effect in March 2019. Workers’ rights organizations filed suit, arguing that the Michigan Constitution does not allow the legislature to amend a voter initiative and pass the amended version into law without voter approval.

After years of legal battles, in July 2024 the Michigan Supreme Court decided that the state constitution allows the legislature to adopt voter initiatives into law unchanged, as it had originally done. However, the court drew the line at allowing the legislature to reject an initiative (as it did by significantly altering 2018 PA 368) and pass it into law without obtaining voter approval of the changes.

The court struck down the legislature’s version of the law and ruled that 2018 PA 338 should take effect as the voters had approved. This decision means the original version of the Earned Sick Time Act should become effective on February 21, 2025 (along with 2018 PA 339, now called the Improved Workforce Opportunity Wage Act).

Pending Legislative Action Leaves Workers’ Rights Uncertain

In January 2025, the Michigan House of Representatives passed a bill that would modify and curtail the protections of the Earned Sick Time Act (and a companion bill modifying the Improved Workforce Opportunity Wage Act). Proposals to modify the scope of both workers’ rights bills are also pending in the Michigan Senate.

With less than two weeks until the original versions take effect, Michigan workers remain uncertain about their rights and employers worry about complying with unanticipated responsibilities. If the legislature passes new modifications, the scope of the anticipated changes could shift significantly. The skilled employment law group at Sommers Schwartz, P.C., can help you navigate the changes to Michigan wage and hour laws, paid leave laws, and other employment-related questions. Our team will keep you up to date on the status of these changes and what they mean for you.