Workforce Bulletin

On August 22, 2024, the Michigan Department of Labor & Economic Opportunity (LEO) issued a press release on the heels of the Mothering Justice decision, about which we previously wrote, and which will drastically change the minimum wage, tip credit, and paid sick leave obligations for Michigan employers.

With respect to paid sick leave, LEO announced that it issued new guidance and FAQs on the Earned Sick Time Act, which goes into effect on February 21, 2025. We will be publishing an Insight shortly detailing all the mandatory changes.

With respect to the minimum wage and tip credit changes, on August 21, the state of Michigan’s Attorney General, LEO, and the Department of Treasury asked the Michigan Supreme Court for clarification on how the Treasurer should calculate adjustments for inflation to set new minimum wage rates, as directed by the July 31 decision. The motion outlines a proposed schedule of new minimum wages based on one interpretation of the Supreme Court’s order, but suggests that ambiguity in the order leaves room for interpretation and therefore lays out five options:

On March 8, 2023, the Michigan Legislature passed Senate Bill 4, amending the Elliott Larsen Civil Rights Act (ELCRA), and adding protections for individuals based on their sexual orientation, gender identity or expression.  Codifying the Michigan Supreme Court’s 2022 decision in Rouch World v MI Department of Civil Rights, which held that discrimination on the basis of sexual orientation constitutes a violation of ELCRA as currently written, the amendment makes Michigan the 24th state to incorporate provisions for safeguarding individuals based on sexual orientation.  The amendment, however, goes one step further to add protections for “gender identity or expression.”

On December 21, 2022, the Michigan Supreme Court held that the Whistleblowers’ Protection Act (“WPA”) protects employees who report that their employer has violated “suspected” laws in a case called Janetsky v. County of Saginaw.  In a first-of-its-kind ruling, the divided Court in Janetsky concluded that an assistant county prosecutor could bring WPA claims against her supervisor who she believed illegally offered a below-minimum plea deal.