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Last week, the Michigan Supreme Court issued a significant decision raising the minimum wage and enacting a one-size-fits-all paid leave benefits for all employers. Here’s a breakdown of what happened, the impact, and what you need to know:

Michigan Supreme Court Ruling: The Michigan Supreme Court declared the Legislature’s 2018 action to adopt and amend two voter-initiated laws in the same session unconstitutional.

Impact: The original voter-initiated versions, PA 337 of 2018 and PA 338 of 2018, will be reinstated on February 21, 2025. These laws:

• Raise Michigan’s minimum wage to $12 per hour by 2025.
• Increase the tipped minimum wage to match the regular minimum wage.
• Require paid sick time for all classifications of workers.

Business Impact: This ruling could lead to job losses and business closures.

What we are doing: The Lansing Regional Chamber of Commerce (LRCC) is working closely with the Michigan Chamber of Commerce and Choose Lansing to plan the next steps, including compliance and potential legislative fixes. Additionally, the LRCC is working on scheduling compliance workshops as part of our LRCC Policy & Regulatory Education Series.

Resources and Updates:

Please continue to visit https://www.lansingchamber.org/advocacy-priorities/ for updates on this issue or contact LRCC SVP of Public Affairs, Steve Japinga, at sjapinga@lansingchamber.org.