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Michigan Court of Appeals Reverses Court of Claims, Halting Minimum Wage Increase & Paid Leave Expansion

Michigan Court of Appeals Reverses Court of Claims, Halting Minimum Wage Increase & Paid Leave Expansion

On January 26, 2023, the Michigan Court of Appeals reversed the July 19, 2022 Court of Claims decision which would have reinstated the Earned Sick Time Act (“ESTA”) and the Improved Workforce Opportunity Wage Act (“IWOWA”), effective February 20, 2023. The Court of Appeals, in a unanimous ruling, held that the Michigan Legislature’s 2018 “adopt and amend” strategy was constitutional.

As a result, Michigan employers will not be required to expand their paid leave policies or increase the minimum wage next month.

It is anticipated that the decision of the Court of Appeals will be appealed to the Michigan Supreme Court.

Kotz Sangster continues to monitor this situation and will provide updates as additional information becomes available.