Michigan Supreme Court’s Landmark Ruling on Minimum Wage
On Wednesday, the Michigan Supreme Court delivered a significant ruling, declaring that state legislators had unconstitutionally undermined a voter-sponsored initiative aimed at raising the minimum wage. This pivotal decision is expected to lead to an increase in Michigan’s current hourly minimum wage of $10.33, potentially rising by at least $2 in February after the state treasurer calculates the necessary inflation adjustments. Furthermore, there will be ongoing cost-of-living increases every year until 2029.
In a crucial development for tipped workers, who currently earn as little as $3.84 per hour, the ruling will ensure that they will eventually be subject to the same minimum wage standards as all other workers by 2029. This move positions Michigan to become the eighth state in the nation to implement a uniform wage floor applicable to all employees.
The response from labor activists and union representatives has been overwhelmingly positive, with many celebrating the court’s decision as a victory for workers’ rights. Saru Jayaraman, the president of One Fair Wage, a prominent national nonprofit organization, expressed her gratitude in a statement: “We have finally prevailed over the corporate interests who attempted every possible tactic to deny all workers, including those in the restaurant industry, the right to receive a full, fair wage in addition to tips.”
Jayaraman’s organization played a crucial role in this legal battle, as they were instrumental in gathering the necessary signatures from Michigan residents in 2018 to bring the ballot initiative to fruition. The proposal was then presented to the Legislature, which was under Republican control at the time.
In an attempt to thwart the proposed wage increase from appearing on the 2018 general election ballot, a coalition of restaurant owners, spearheaded by the Michigan Restaurant and Lodging Association, lobbied the Legislature to adopt the proposal put forth by One Fair Wage and other advocacy groups directly. The Legislature complied, but subsequently rolled back key provisions of the law after the election.
