Small Businesses Across Michigan at Risk Due to Misguided Ruling.

The ruling from the Michigan Supreme Court is a disaster for all small businesses throughout the state. By striking the changes made to the paid sick leave and minimum wage petition-initiated legislation, all small business employers will be mandated to provide 72 hours of paid leave, the minimum wage will be increased to $12 by 2028, and the tip credit for servers will be eliminated. NFIB filed an amicus brief with several business groups arguing the Michigan Legislature had constitutional authority.

“To say we are disappointed in this ruling is an understatement. After a unanimous ruling in our favor at the Appellate Court, it is hard not to see this ruling as politically motivated,” said Amanda Fisher, NFIB Michigan State Director. “The implications of this ruling are going to have wide ranging negative effects on Michigan and will be a nightmare for all employers in Michigan – not just businesses. The reason the Legislature chose to Adopt and Amend was due to the original language being a regulatory nightmare and to provide clarity for employers and employees.

“As usual, small businesses, especially restaurants, will bear the brunt of continued judicial usurpation of legislative power. If large corporations have indicated that the law that will now be in effect is unworkable, how is a small business able to cope?

“We are calling on the Legislature and Governor to work with employers of all kinds to make the legislative changes needed in order for businesses to be able to continue to operate, grow, and provide the jobs needed to help Michigan thrive. “

The case concerned whether the Michigan Legislature had the authority to adopt and then amend the paid leave and minimum wage ballot proposals. In January 2023, the Michigan Appeals Court ruled 3-0 that the ability of the Legislature to adopt and then amend a citizen-initiated referendum in the same session was constitutional.

Michigan small business owners are invited to join a virtual webinar on Tuesday, August 6, to learn more about the ruling and what it means for your small business. Register here.