The Michigan Supreme Court has overruled the Legislature and reinstated major changes to the state’s minimum wage and sick leave laws.
The court ruled four to three Wednesday that Republican lawmakers violated the state constitution when they scaled back a voter-approved minimum wage hike in 2018. The 2018 ballot initiative would have raised the minimum wage to $12 an hour by 2022, and now that will take effect next year.
The move also means tipped workers, like restaurant servers, will now make the full minimum wage. Southwest Michigan Regional Chamber President Arthur Havlicek says this will be devastating to restaurants.
“They may have to reevaluate, for example, how many people they employ, because now they are forced to pay certain people more, or how they structure compensation for servers, how it impacts folks, say, back in the kitchen when they need pool tips,” Havlicek said.
Havlicek is calling on the Legislature to take action. Chris Mason, co-founder of Watermark Brewing Company in Stevensville, agrees. He tells us this is a blow coming right off COVID.
“This is just a drastic tidal wave,” Mason said. “This is a reminder of how COVID was. It’s a drastic, ‘Hey, as a small business owner, you have to be reactive instead of proactive in a situation.’”
Havlicek says the ruling also increases the paid sick leave obligations faced by businesses, which will also harm them.
Meanwhile, state Senator Aric Nesbitt says the Legislature needs to act to “prevent catastrophic damage to the livelihoods of the workers at restaurants and bars throughout our state.”
However, Democrats like Attorney General Dana Nessel have welcomed the court’s decision, calling it a “landmark victory for Michigan voters and a resounding affirmation of the power of direct democracy.”
