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Judge Stays Ruling in Minimum Wage, Sick Time Case  

July 29, 2022

In somewhat of a surprise, the Judge at the court of claims whose decision would have increased minimum wage and added a mandatory paid sick leave benefit has agreed to “stay” his own decision. This means that the decision will not go into effect until February 19, 2023, or upon action of a higher court, whichever comes first. 

In practical terms, this means that small business owners do not need to change anything now while the appeals process is carried out. 

SBAM is working in conjunction with other business associations to support legal efforts against government overreach regarding setting the wage and benefit levels of small businesses.

As a reminder of what is at stake, under current law, minimum wage is $9.87/hour. If this lower court ruling stands, the minimum wage in Michigan would jump from $9.87/hour to $12/hour and then be adjusted upward by inflation each year thereafter. Additionally, the tipped minimum wage would be increased to $9.60/hour immediately and be further raised to match the regular minimum wage by 2024.

Also under current law, employers with fewer than 50 employees are not subject to mandatory paid sick leave requirements and employers with more than 50 employees have to provide a minimum of 1 hour of sick leave for every 35 hours worked, up to a minimum of 40 hours each year.

Under the lower court ruling (which is now stayed during appeal) the mandatory paid sick leave benefit would increase to 1 hour given for every 30 hours worked up to a minimum benefit level of 72 hours each year. This provision would apply to all employers of all sizes, including businesses with fewer than 50 employees. SBAM will keep you informed every step of the way though the appeals process. 

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