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:
The Michigan Supreme Court has written the latest, and perhaps last, chapter of an ongoing saga affecting most Michigan employers. In Mothering Justice v. Attorney General, the Michigan Supreme Court fully restored sweeping minimum wage and paid sick leave laws, bringing finality to a legal controversy that has been churning since the laws were first proposed in 2018. Pursuant to that decision, the laws will take full effect in their original form, about six months from now, on February 21, 2025.
How We Got Here
In 2018, labor advocacy groups presented the Michigan legislature with two voter initiatives related to minimum wage (the Improved Workforce Opportunity Wage Act (IWOWA)) and paid sick leave (the Earned Sick Time Act (ESTA)) through the state’s citizen initiative process. Michigan’s constitution allows voter initiatives to propose legislation, and the legislature may take one of these three actions: (1) adopt “without change or amendment”; (2) reject and place the proposed legislation on the ballot; or (3) reject and propose an amendment, placing both on the ballot. As we previously explained, the Legislature quickly enacted amended versions of the IWOWA (2018 PA 368) and the ESTA, which was renamed the Paid Medical Leave Act (PMLA) (2018 PA 369), with significant changes. As we detailed here, the amended versions of these laws were less burdensome to employers.
The legislature’s actions led the initiatives’ advocates to file a legal action challenging the lawmakers’ authority to modify a voter initiative so quickly and dramatically through a process labeled “adopt and amend.” That lawsuit has wended its way through Michigan’s courts, with the final outcome decided on July 31, 2024, echoing that of the initial holding issued in 2022: the Michigan legislature’s adoption-and-amendment of the two initiatives violated the State constitution’s provision on voter initiatives. Hence, those amendments are void as unconstitutional and the laws as originally conceived should take effect.
As featured in #WorkforceWednesday: This week, we’re learning more about the Occupational Safety and Health Administration’s (OSHA’s) final rule on safety inspections, new COVID-19 guidance from the Centers for Disease Control and Prevention (CDC), and minimum wage updates from California (CA), New York City (NYC), and Virginia (VA).
More than a decade ago, Epstein Becker Green (EBG) created its complimentary wage-hour app, putting federal, state, and local wage-hour laws at employers’ fingertips.
The app provides important information about overtime, overtime exemptions, minimum wages, meal periods, rest periods, on-call time, and travel time, as well as tips that employers can use to remain compliant with the law and, hopefully, avoid class action, representative action, and collective action lawsuits and government investigations.
As the laws have changed over the years, so too has EBG’s free ...
More than a decade ago, Epstein Becker Green (EBG) created its complimentary Wage & Hour Guide for Employers app, putting federal, state, and local wage-hour laws at employers’ fingertips.
The app provides important information about overtime exemptions, minimum wages, overtime, meal periods, rest periods, on-call time, travel time, and tips that employers can use to remain compliant with the law—and, hopefully, to avoid class action, representative action, and collective action lawsuits and government investigations.
As the laws have changed over the years, so, too, has EBG’s free wage-hour app, which is updated regularly to reflect those developments.
Years ago, Epstein Becker Green (“EBG”) created its free wage-hour app, putting federal, state, and local wage-laws at employers’ fingertips.
The app provides important information about overtime exemptions, minimum wages, overtime, meal periods, rest periods, on-call time, travel time, and tips.
As the laws have changed, so, too, has EBG’s free wage-hour app, which is updated to reflect those developments.
Ohio’s minimum wage will increase to $9.30 per hour for non-tipped employees and $4.65 per hour for tipped employees, effective January 1, 2022. This new minimum wage will apply to employees of businesses with annual gross receipts of more than $342,000 per year.
For employees at smaller companies with annual gross receipts of $342,000 or less per year, and for 14- and 15-year-olds, the minimum wage continues to be the federal rate of $7.25 per hour.
As a reminder, employers should update their minimum wage and overtime poster, which should be posted in a location that is easily ...
Our colleagues Denise Dadika and Vidaur Durazo of Epstein Becker Green have a new post on the Health Employment and Labor blog that will be of interest to our readers: "Changing Floors: Minimum Wage Increases for Health Leaders to Consider".
The following is an excerpt:
2021 is set to be a landmark year for the number of jurisdictions raising wage floors across the country. According to a National Employment Law Project report, as of January 1, 2021, 20 states and 32 municipalities raised their minimum wage. By the end of 2021, the report tracks that as many as 24 states and 50 ...
With the start of the New Year, employers in the hospitality sector should prepare for new state- and local- minimum wage increases for their non-exempt employees. To help multi-jurisdictional employers easily navigate these changes, we have prepared the chart below, which summarizes the new minimum wage rates that have taken effect on January 1, 2020, unless otherwise indicated. Check back here in June for a summary of the new minimum wage rates that will take effect July 1, 2020.
| Jurisdiction | Current Minimum Wage | New Minimum Wage |
| Alaska | $9.89 | $10.19 |
| Albuquerque NM (No Benefits) |
Webinar – Spring/Summer 2019
Internship programs can help employers source and develop talent, but they do not come without their pitfalls. If you are an employer at a tech startup, a large financial institution, a fashion house, or something else entirely, and you plan on having interns this summer, this webinar is for you. Learn the steps for creating a legally compliant internship program.
For many years, the U.S. Department of Labor (“DOL”) used the “six-factor test” when determining whether an employee was legally considered an unpaid intern, such that the ...
Webinar - Spring/Summer 2019
Internship programs can help employers source and develop talent, but they do not come without their pitfalls. If you are an employer at a tech startup, a large financial institution, a fashion house, or something else entirely, and you plan on having interns this summer, this webinar is for you. Learn the steps for creating a legally compliant internship program.
For many years, the U.S. Department of Labor ("DOL") used the “six-factor test” when determining whether an employee was legally considered an unpaid intern, such that the intern would not ...
On March 1, 2019, the New York State Department of Labor (NYSDOL) announced that it is no longer pursuing predictive scheduling regulations (or “call-in pay”) that would have affected most employers in the state. For the time being, New York employers do not have to worry about pending statewide regulations regarding call-in pay. Keep in mind, however, that New York City employers are still subject to the Fair Workweek Law.
The proposed NYSDOL regulations would have required employers provide “call-in pay” ranging from two to four hours at the minimum wage in these ...
The New York State Department of Labor (“DOL”) recently issued proposed statewide regulations that would require employers to pay employees “call-in pay” when employers use “on call” scheduling or change employees’ work shifts on short notice. This is not the DOL’s first foray into this area – in November 2017, the DOL released similar proposed regulations but ultimately declined to adopt them. The DOL’s new set of proposed regulations would apply to the vast majority of employers operating in New York, but are of particular interest to New York City retail ...
A legislative bargain requires give-and-take from all stakeholders. On June 28, 2018, Massachusetts Governor Baker signed House Bill 4640, “An Act Relative to Minimum Wage, Paid Family Medical Leave, and the Sales Tax Holiday” (the “Act”). This “grand bargain” gradually raises the minimum wage, provides for paid family and medical leave, makes permanent the Commonwealth’s annual tax holiday, and phases out Sunday and holiday premium pay requirements. While Massachusetts employers must now adjust to an increased minimum wage and new paid family medical leave ...
Our colleagues , at Epstein Becker Green, have a post on the Wage and Hour Defense Blog that will be of interest to many of our readers in the hospitality industry: “Labor Issues in the Gig Economy: Federal Court Concludes That GrubHub Delivery Drivers are Independent Contractors under California Law.”
Following is an excerpt:
Recently, a number of proposed class and collective action lawsuits have been filed on behalf of so-called “gig economy” workers, alleging that such workers have been misclassified as independent contractors ...
Our colleague at Epstein Becker Green, has a post on the Wage and Hour Defense Blog that will be of interest to many of our readers in the retail industry: “Tenth Circuit Rules Tips Belong to the Employer If Tip Credit Is Not Taken.”
Following is an excerpt:
When an employer pays the minimum wage (or more) instead of taking the tip credit, who owns any tips – the employer or the employee? In Marlow v. The New Food Guy, Inc., No. 16-1134 (10th Cir. June 30, 2017), the United States Court of Appeals for the Tenth Circuit held they belong to the employer, who presumably can ...
A featured story on Employment Law This Week is the Ninth Circuit's backing of the Department of Labor's rule on "tip pooling."
In 2011, the Department of Labor issued a rule that barred restaurant and hospitality employers from including kitchen staff in “tip pools,” which are sometimes used to meet an employer’s minimum wage requirements. The DOL ruled that kitchen staff should be excluded from pools even if the tips are not required to meet minimum wage obligations. Two district court decisions held that the department does not have the authority to regulate this ...
Election Day 2014 proved to be a big win for employees who earn minimum wage. Several states and cites approved measures to increase the minimum wage. The city of Oakland, CA established its first ever minimum wage at $12.25/hour, which will go into effect on March 2, 2015. Over the past few years, many states and cities have passed legislation that will increase minimum wage based on inflation rates, as tied to the Consumer Price Index. While some states have not yet announced the new minimum wage, they may still see increases in the new year (e.g ...
By: Anna A. Cohen and Nancy L. Gunzenhauser
It’s that time of year! As the new year rolls in, 13 states are increasing their minimum wage. Unless noted otherwise, all increases to the minimum wage reflected below will become effective on January 1, 2014.
| State | Current | New* |
| Arizona | $7.80 | $7.90 |
| California | $8.00 | $9.00 (effective 7/1/14) |
| Connecticut | $8.25 | $8.70 |
| Florida | $7.79 | $7.93 |
| Missouri | $7.25 | $7.50 |
| Montana | $7.80 | $7.90 |
| New Jersey | $7.25 | $8.25 |
| New York | $7.25 | $8.00 (effective 12/31/13) |
| Ohio | $7.85 | $7.95 |
| Oregon | $8.95 | $9.10 |
| Rhode Island | $7.75 | $8.00 |
| Vermont | $8.60 | $8.73 |
| Washington | $9.19 |
By Evan Rosen
Hospitality employers continue to get hit with class action lawsuits alleging that they are unlawfully taking the tip credit for their employees. Under federal law, and the law of most states, an employer may pay less than the minimum wage to any employee who regularly and customarily receives tips. The difference between the minimum wage and the hourly wage rate is called the "tip credit."
This compensation system, when administered correctly, has the advantage of saving employers a significant sum of money. But employers must implement ...
By Michael Kun
On January 1, 2012, the minimum wage for employees working in San Francisco will rise to $10.24 per hour.
This is, to our knowledge, the first time the minimum wage in any U.S. city has ever exceeded $10 per hour.
Employers with employees in San Francisco will need to make sure that they make appropriate adjustments to their payroll systems and practices to account for the increase.
By: Ana S. Salper
With the recent surge in class action wage and hour lawsuits, hospitality employers have developed a heightened sensitivity to tip pooling arrangements, distributions of service charges to employees, and application of the “tip credit.” A case before the U.S. Supreme Court this month, Applebee’s International Inc. v. Gerald A. Fast et al., is likely to add further fuel to the fiery “tip credit” world, as the high court will have to decide whether tipped employees should be paid minimum wage for nontipped tasks employees perform.
Under the Fair Labor ...
By: Kara M. Maciel
The Department of Labor’s Wage and Hour Division in Norfolk, Virginia has announced that it will be stepping up its compliance audits and enforcement efforts against area hotels. In the past few years, the DOL stated it found violations at about 60% of local hotels. According to the DOL, the agency recently made spot checks at 10 area hotels since April. This is just one part of the agency’s nationwide enforcement program and its “Plan/Prevent/Protect” initiative against the hospitality industry. Common violations assessed by the DOL include:
· ...
By: Kara M. Maciel and Jordan Schwartz
On May 10, 2011, the Southern District of New York conditionally certified a collective action against eight New York metropolitan area restaurants owned by celebrity chef Mario Batali alleging violations of the Fair Labor Standards Act. In the action, restaurant servers argue that the Batali restaurants are paying employees less than minimum wage and unlawfully retaining a portion of their tips.
The primary allegation in the lawsuit is that the restaurants deduct from the employee tip pool a portion of all credit-card tips equal to ...
By: Amy Traub
Following up on our previous blog posting from November 2, 2010, on December 16, 2010, the New York State Department of Labor issued a new minimum wage order (the “Order”) which will bring immediate changes to the restaurant and hotel industries. Under the Order, employees will be due a higher minimum wage and subject to new tip pooling rules. Meanwhile, employers will need to comply with more stringent recordkeeping requirements. Although employers have until February 28, 2011, to adjust their payrolls, they will still owe their employees back pay as of ...
By: Amy J. Traub
The New York State Department of Labor recently issued a proposed rule which would combine the current wage orders for the restaurant and hotel industries to form a single Minimum Wage Order for the Hospitality Industry. If adopted, the Wage Order would affect requirements related to the minimum wage, tip credits and pooling, customer service charges, allowances, overtime calculations, and other common issues within the restaurant and hotel industries. Additionally, the Wage Order would provide helpful guidance for traditionally ambiguous wage issues such as ...
U.S. Department of Labor Issues Proposed Rule on H-2B Wage Rates
On October 4, 2010, the Employment and Training Administration, U.S. Department of
Labor (“DOL”), issued a proposed rule that would require employers to pay H-2B and
American workers recruited in connection with an H-2B job application a “wage that meets
or exceeds the highest of: the prevailing wage, the federal minimum wage, the state minimum
wage or the local minimum wage.” The proposed rule was published on October 5, 2010, in
the Federal Register. Interested parties have 30 days to ...
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