Updates About Supreme Court Rulings

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.

In a recent ruling, the Michigan Court of Appeals upheld setting the state’s personal income tax rate to 4.25%, dismissing appeals for a return to the 4.05% rate that we saw in 2023. The three-judge panel’s unanimous decision was grounded on an absence of legislative language declaring that the rate reduction would be permanent. The court also noted that including such verbiage would introduce the potential for compounding reductions that could jeopardize the existence of an income tax altogether.

The case, initiated by a coalition including two lawmakers and various taxpayers, contested Attorney General Dana Nessel’s opinion that the reduced rate only applied to 2023. The Mackinac Center for Public Policy, which led the suit, plans to appeal based on the implication that the bill’s language necessitates a permanent tax cut. Stay tuned for further developments as the appeal progresses.

The federal panel overseeing the redistricting of several Detroit-area House districts has approved the Independent Citizens Redistricting Commission’s Motown Sound remedy map for the upcoming 2024 elections. The court ruled that the commission’s map complies with federal law, rejecting arguments for an alternative map. The Motown Sound map will be used for the upcoming elections after changes were made to 15 districts following the ruling that seven were unconstitutional. Read more about the redistricting and Supreme Court ruling here.

¶See the Michigan Motown Sound Final House District Map Here