Super Lawyers Honors Kotz Sangster Attorneys
Kotz Sangster attorneys have been recognized as 2024 Michigan Super Lawyers and Rising Stars.
In 2018, groups sponsoring two ballot initiatives, the Earned Sick Time Act (“ESTA”) and the Improved Workforce Opportunity Wage Act (“IWOWA”), collected enough signatures to place the initiatives on the November 2018 ballot. The ETSA provided for mandatory paid sick leave and the IWOWA provided for incremental increases to the minimum wage. However, in September 2018, and before either initiative could be voted on, the Michigan Legislature enacted both initiatives and then immediately amended them. This has been referred to as an “adopt and amend strategy.” The two ballot initiatives were substantially modified, and key provisions were revised, after they were adopted by the Legislature.
As a result, in March 2019, the Michigan minimum wage increased to $9.45/hour, and the ETSA, which had been renamed as the Michigan Paid Medical Leave Act (“PMLA”), went into effect.
In May 2021, Mothering Justice, an advocacy group for mothers, along with others, filed a lawsuit in the Michigan Court of Claims, seeking to invalidate the PMLA and the amended IWOWA.
On July 19, 2022, the Court of Claims, in the case captioned Mothering Justice v. Nessel, held that the Michigan Legislature violated the Michigan Constitution with its adopt and amend strategy. Importantly, this ruling voided the minimum wage law and the PMLA (which had gone into effect in 2019), and reinstated the original versions of the two laws that had been placed on the ballot in 2018.
On July 20, 2022, the State of Michigan appealed the decision of the Court of Claims to the Michigan Court of Appeals.
On July 29, 2022, the Court of Claims entered an order staying the effect of its July 19, 2022 decision until Feb. 19, 2023.
On December 13, 2022, the Michigan Court of Appeals heard oral arguments. No decision was issued at that time. The parties requested an expedited opinion by February 1, 2023.
Therefore, as of now, and because of the stay entered by the Court of Claims, nothing has changed, and the status of the laws remains in a holding pattern presumably through February 19, 2023, unless a decision by the Michigan Court of Appeals is issued before that date.
It is expected, however, that the decision of the Michigan Court of Appeals, when issued, will be appealed to the Michigan Supreme Court, which means the litigation will continue. It is also anticipated that another stay will be requested, pending the ruling of the Michigan Supreme Court.
If the Court of Claims’ decision is not overturned and there is no appeal, the following will become effective on February, 20, 2023, per the ETSA:
As to the minimum wage, under the original initiative, and per the Michigan Department of Labor and Economic Opportunity, the following would occur:
Therefore, while the current laws remain in effect, employers should be aware of the changes that may become effective February 20, 2023, consider what steps they will need to take to be in compliance with the original ballot initiatives, and be prepared to implement same.
Kotz Sangster continues to monitor this situation and will provide updates as additional information becomes available.