Great Lakes Wire

Michigan’s $10.33 per hour minimum wage would increase by $2.15 next year and reach $14.97 in 2028 under the Department of Treasury’s interpretation of a recent Michigan Supreme Court ruling.

The adjustments were included in the Attorney General’s office brief seeking clarification on the Michigan Supreme Court’s July ruling that the 2018 Republican-led Legislature could not adopt and amend ballot initiatives related to the minimum wage and paid sick leave in the same session.

The AG’s office said the court provided July 31 as an end date for calculating inflation, but did “not clearly provide the beginning date.”

“Given the unprecedented situation created by reviving the Wage Act six years later, the State, employers and employees all need clear guidance from this Court on the proper methodology for calculating the minimum wage,” reads a brief filed on behalf of Attorney General Dana Nessel.

The AG’s office wants a decision before Sept. 15 as the deadline for the Michigan Department of Treasury to calculate and publish inflation rates in accordance with 2018 Public Act 337 is Nov. 1.

The Supreme Court held that the original proposal would go into effect Feb. 21 and that the state should adjust the numbers to take inflation into account.

If the court doesn’t clarify as requested, the Treasury department intends to bring statutory minimum wages current to July 31, 2024, through an inflationary catch-up beginning Jan. 1, 2019, according to a court filing.

That means the current $10.33 per hour wage jumps to $12.48 in 2025, $13.29 in 2026, $14.16 in 2027, and $14.97 in 2028, according to AG’s filing.

The AG’s office said clarification is needed on how to calculate inflation rates from 2025 through 2028 and on what constitutes "credit."

The office also seeks clarification on whether the court intended to “exclude the 90 percent graduated increase for tipped wages” and about effective dates for each year’s wage increases beginning in 2026.

In its motion, AG's office provides alternatives for adjusting wages from 2025 through 2028:

- Looking back at twelve months before July 31;

- Strictly applying Section 4(2) assuming a year-over-year inflation analysis beginning September 2021;

- Strictly applying Section (4)(2) assuming a twelve-month averaging analysis;

- Applying a rolling start year for each of these years while maintaining a July end date.

In 2018, activists circulated a citizens’ initiative proposing a $12-an-hour minimum wage and paid sick time petition; however, neither petition saw a statewide vote as lawmakers adopted them before changing laws post-Election Day with simple majority support.

Article courtesy MIRS News for SBAM's Lansing Watchdog newsletter

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