Thanks to a Michigan Supreme Court ruling Wednesday, the state’s minimum wage is poised to rise from $10.33 per hour to $15 per hour in the next several years.
In a 4-3 ruling, the Democratic-majority state Supreme Court decided that the former Republican-controlled Legislature improperly blocked two ballot proposals in 2018 that would raise the minimum wage and expand sick leave for workers. But before the ballot initiatives were put before voters, lawmakers adopted the measures only to weaken the policies in the lame duck period after the election.
In her majority opinion, Michigan Supreme Court Justice Elizabeth Welch wrote that this so-called “adopt-and-amend” maneuver “unconstitutionally violated the people’s initiative rights.”
As a result, the court ordered the proposals to be reinstated as originally written, with a $2 minimum wage hike to go into effect on Feb. 21, 2025, increasing in the following years according to inflation to around $15 per hour in 2028.
The law will also phase out the lower wage for tipped workers in 2029.
One Fair Wage, a nonprofit representing restaurant workers that joined the lawsuit arguing that the “adopt-and-amend” tactics were unconstitutional, celebrated the win.
“This is a great day for the more than 860,000 workers in Michigan who are getting a raise,” One Fair Wage president Saru Jayaraman said in a statement. “We have finally prevailed over the corporate interests who tried everything they could to prevent all workers, including restaurant workers, from being paid a full, fair wage with tips on top.”
Attorney General Dana Nessel also celebrated the decision.
“This is a landmark victory for Michigan voters and a resounding affirmation of the power of direct democracy,” Nessel said. “The Legislature cannot manipulate its power to undermine the will of the people. This ruling sends a clear message that elected officials cannot disregard the voices of their constituents. I am glad to see the Court recognize and respect that the people reserved for themselves the power of initiative, a crucial tool meant to shape the laws that govern them.”
Unsurprisingly, the news was not celebrated by the Michigan Restaurant & Lodging Association lobbying group, which warned that such wage increases will hobble an already fragile industry.
“Today’s tone-deaf ruling by the Michigan Supreme Court strikes a likely existential blow to Michigan’s restaurant industry,” MRLA president and CEO Justin Winslow, President & CEO said in a statement. “As our recent industry operations survey illustrated, 40% of full-service restaurants in Michigan are already unprofitable, meaning this decision is likely to force more than one in five of them to close permanently, eliminating up to 60,000 jobs along the way.”
Winslow urged the state Legislature to pass a compromise solution “that prevents this impending catastrophe before it is implemented.”
He added, “The future of Michigan’s restaurant industry and the stability of Michigan’s overall economy hangs in the balance.”
