Pending Supreme Court Ruling on MI Minimum Wage Law Could Have Significant Impacts
Update: May 28-Jun 10, 2024
Governor Gretchen Whitmer and Michigan Legislators are bracing for potential upheaval should the state’s minimum wage law be invalidated by the Michigan Supreme Court. If the court strikes down the existing law, which allows tips to count towards minimum wage, Michigan could see its minimum wage potentially rise to over $13 per hour. Advocates for the wage increase, such as One Fair Wage, believe an increased wage is essential to filling low-wage job vacancies. However, critics in the hospitality industry worry that the prices of food and beverages will rise and layoffs may occur due to restaurant labor costs increasing by 250%. The fate of Michigan’s paid sick leave law also hangs in the balance.
Whitmer and State Lawmakers are considering their options, weighing the need to uphold the spirit of voter initiatives while ensuring the viability of small businesses. Worker advocates are pushing for further increases in the minimum wage to $15 by 2027, while industry representatives emphasize the importance of retaining the tip credit system. The court’s decision, expected by the end of July, could have far-reaching implications for Michigan’s economy and political landscape.