Michigan Reinstates 2018 Minimum Wage and Paid Sick Leave Laws
After more than three years of litigation, the Michigan Supreme Court has determined that it was unconstitutional for the legislature to adopt and amend a voter-initiated petition in the same legislative session. As a result, the original minimum wage and sick leave laws, proposed and approved by the voters of Michigan back in 2018, will take effect on February 21, 2025.
Below are key details from those laws.
Minimum Wage and Tip Credit
The minimum wage will increase on a revised annual schedule, maintaining the original phase-in plan with adjustments for inflation. Minimum wages will be as follows through 2027:
- February 21, 2025: $10 plus an inflation adjustment. The base minimum wage for tipped employees will be 48% of the state minimum wage.
- February 21, 2026: $10.65 plus an inflation adjustment. The base minimum wage for tipped employees will be 60% of the state minimum wage.
February 21, 2027: $11.35 plus an inflation adjustment. The base minimum wage for tipped employees will be 70% of the state minimum wage.
Michigan Earned Sick Time
Employees will accrue EST at a rate of one hour for every 30 hours worked beginning February 21, 2025, or on their hire date—whichever is later. Employers can calculate exempt employees’ accrual based on a 40-hour workweek (even if employees generally work more than that), or the normal workweek can be used if they regularly work less than 40 hours. The law doesn’t address frontloading, but presumably, it will be allowed because it’s more beneficial to employees than hour-by-hour accrual. Carryover of unused accrued EST must be allowed from year to year.
To help employers prepare for the law, Michigan’s Department of Labor and Economic Opportunity (LEO) created a website that includes frequently asked questions (FAQs), the required poster (in English), and a link to the law. Further information regarding Michigan Earned Sick Time will be shared as the effective date draws closer.
Note that it’s possible that additional changes will occur between now and the effective date of these laws. Resourcing Edge will monitor this closely and provide updates as needed.
