LANSING, MI (WKZO AM/FM) – While some organizations representing restaurant workers in the state are applauding the decision as a victory for workers in Michigan, the Michigan Restaurant and Lodging Association is calling a ruling Wednesday by the Michigan Supreme Court a “a likely existential blow to Michigan’s restaurant industry and the nearly 500,000 workers it employs.”
The Supreme Court ruled 4-3 to strike down the Michigan Legislature’s “adopt and amend” strategy, overruling a lower court’s decision.
The majority opinion, which came down on the last day of the Supreme Court session, was written by Justice Elizabeth Welch and joined by Justices Richard Bernstein, Kyra Harris Bolden and Megan Cavanagh.
“Article 2, § 9 of the 1963 Michigan Constitution provides the Legislature with three—and only three—options upon receiving a valid initiative petition. The Legislature may not adopt an initiative petition and then later amend it in the same legislative session; such an act violates the people’s right to propose and enact laws through the initiative process under Const 1963, art 2, § 9,” the ruling reads.
The appeals court in 2023 voted 3-0 that the state legislature was constitutional in what’s known as the adopt and amend rule in Michigan which allows the legislature to take up citizen-led petitions, adopt them, and then pass them before they ever get to a ballot.
The legal battle started in 2018 from One Fair Wage, which sought to allow voters to decide on raising Michigan’s minimum wage to $13.03 an hour and tipped worker wages to $11.73 per hour in 2023. Another petition dealt with sick leave.
They had enough signatures to go to the ballot, but the Republican-led Michigan legislature instead adopted both bills, and then amended them later, increasing the minimum wage to $12.05 per hour by 2030. A Court of Claims judge ruled that the adopt and amend policy was unconstitutional, but the Court of Appeals judges ruled that it was legal. The Supreme Court disagreed.
The Wage Act and Earned Sick Time Act will now go into effect February 1, 2025. Under Michigan’s current minimum wage law, the minimum wage is $10.33 per hour and tipped workers earn $3.93 per hour. Now, the minimum wage will go up at least $2 per hour, depending on inflation.
The minimum wage will also continue to go up three years after 2025 based on inflation.
After the ruling, Justin Winslow, the President and CEO of the Michigan Restaurant and Lodging Association said, “As our recent industry operations survey illustrated, 40% of full-service restaurants in Michigan are already unprofitable, meaning this decision is likely to force more than one in five of them to close permanently, eliminating up to 60,000 jobs along the way.”
“We urgently call on the Michigan legislature to act swiftly, implementing a compromise solution that prevents this impending catastrophe before it is implemented. This action must consider the perspectives of both industry operators and tipped employees who have overwhelmingly expressed their preference to preserve the tip credit and the earning potential it provides. The future of Michigan’s restaurant industry and the stability of Michigan’s overall economy hangs in the balance.”
Saru Jayaraman, President of One Fair Wage, who proposed the original ballot initiative, said, “This is a great day for the more than 494,000 workers in Michigan who are getting a raise. We have finally prevailed over the corporate interests who tried everything they could to prevent all workers, including restaurant workers, from being paid a full, fair wage with tips on top.”
Michigan Attorney General Dana Nessel praised the Michigan Supreme Court opinion in Mothering Justice et al v Nessel and State of Michigan, said “This is a landmark victory for Michigan voters and a resounding affirmation of the power of direct democracy,” Nessel said. “The Legislature cannot manipulate its power to undermine the will of the people. This ruling sends a clear message that elected officials cannot disregard the voices of their constituents.”
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