The decision on July 19 reinstitutes both the “Improved Workforce Opportunity Wage Act” and the “Earned Sick Time Act:”.
The Improved Workforce Act and the Earned Sick Time Act do the following:
- Increase the minimum wage to $12 per hour.
- The tipped minimum wage would be set at $9.60.
- Starting in 2023, the tipped minimum would be adjusted to 90% of full minimum wage and in 2024 would match the full minimum wage.
- Apply the Medical Leave Act to all businesses with one or more employees. (Previously, it was 50 employees).
- The Medical Leave Act requires employers to provide 1 hour of paid sick leave for every 30 hours worked. Capped at 72 hours if you have more than 10 employees and 40 hours if less than 10 employees. (That translates to 40 hours of paid sick leave per year per employee).
Obviously, these laws would cause devastating changes to all small businesses in Michigan especially bars and restaurants.
As of this newsletter printing, legislators are working on an appeal and a stay of the decision.
Kallas will keep you updated via E-Blasts regarding any news updates.
In the meantime, talk to your legislators and especially the Governor to do something about this.
