Supporters of increasing the state’s minimum wage and earned sick leave received a ruling from the Michigan Supreme Court on Wednesday that’s in their favor. This week on MichMash, host Cheyna Roth and Gongwer News Service’s Alethia Kasben sat down with Crain’s Detroit Business senior reporter Dave Eggert to discuss the ramifications of the ruling on the state’s businesses. 

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In this episode:

• The origins of the adopt and amend legislative tactic
• The future of minimum wages in Michigan
• Michigan businesses’ reaction to the increase in minimum wage and earned sick leave

The Michigan Legislature’s controversial “adopt and amend” tactic refers to the legislature adopting a ballot measure before allowing it to go to voters and then amending it significantly during the legislative session.

The Michigan Supreme Court’s 4-3 ruling on Wednesday found that the legislative tactic — used by the Legislature in 2018 to gut a voter-approved ballot initiative to increase the state’s minimum wage — was “unconstitutional” because it circumvented the petition initiative process.

“It was very controversial in the moment. The legislature at the time was controlled by Republicans,” Eggert said. “Ballot initiatives generally are thought to generate extra turnout, particularly on those issues, probably for Democrats; for Republicans and business groups, they feel like the laws were unwieldy.”

The ruling, which will allow for an increase to the state’s minimum wage and tipped minimum wage — as well as an expansion of the state’s earned sick time laws — will have a big impact on local businesses.

Some critics of those changes suggest exemptions for small businesses.

“Do they go and try to go back to exempting all businesses with 50 or fewer employees? That could be a pretty tough lift in the Democratic-led legislature” Eggers said.

The new minimum wage law will take effect in February 2025. 

More from WDET:

• How Michigan Supreme Court’s ruling on minimum wage, sick leave will affect workers and businesses
• Michigan Supreme Court sets stage for minimum wage boost
• Karamo forcibly removed from Michigan GOP convention; party chooses Fink, O’Grady for state Supreme Court

More from Gongwer:

• Impossible Or Inevitable? Adopt-And-Amend Fallout Continues