Navigating Changes in Michigan’s Minimum Wage and Sick Time Regulations
Prepare for 2025: A Guide for Employers
The Michigan Supreme Court’s decision on July 1, 2024, to fully restore the state’s original minimum wage and paid sick leave laws marks a pivotal moment for workers and employers alike. This decision, stemming from the case of Mothering Justice v. Attorney General, overturns the legislature’s previous amendments and restores the Improved Workforce Opportunity Wage Act (IWOWA) and the Earned Sick Time Act (ESTA) to their initial forms.
Effective February 21, 2025, the reinstated laws will significantly increase the minimum wage and expand paid sick leave benefits, impacting nearly all Michigan employers.
For businesses and organizations, this ruling necessitates substantial adjustments in payroll, budgeting, and human resources policies to comply with the new standards. While the changes aim to enhance worker protections and benefits, they also present challenges for employers who must navigate the increased financial and administrative burdens.
Yeo & Yeo has developed this comprehensive guide to assist employers in navigating the reinstated Michigan minimum wage and paid sick leave laws, helping to ensure an understanding of the rules and compliance with the new regulations.
Visit our Michigan Minimum Wage and Earned Sick Time resource page for additional information and ongoing guidance.
