Seven labor unions are jointly calling on the Michigan Legislature to adhere to the Michigan Supreme Court’s recent decision declaring that the state lawmakers’ 2018 “adopt and amend” maneuver to avoid putting minimum wage and paid sick time initiatives on the ballot was unconstitutional. In essence, the labor unions are asking lawmakers to abide by the state’s highest court’s ruling to enshrine workers’ rights to a universal $15 minimum wage over the next three-plus years. Afterward, the minimum wage will be adjusted based on inflation data and forecasts. Some Michigan Republican lawmakers have teamed up to find ways to subvert the new minimum wage policies that are set to take effect beginning in February of next year.
In a letter sent to House Speaker Joe Tate and Senate Majority Leader Winnie Brinks – both Democrats – the labor unions – Michigan AFL-CIO, SEIU (Michigan), AFT (Michigan), UFCW951, AFSCME Michigan, MI Nurses Association, and Michigan Education Association (MEA) – stressed the importance of protecting workers’ rights through wage increases for tipped workers, youth, and workers with disabilities, all of which should be implemented without legislative roadblocks.
“The Michigan Supreme Court said unflinchingly that the Republican-controlled legislature’s decision to adopt and amend was an unprecedented and unconstitutional act,” the letter said. “We write to reject any attempt to undermine this historic worker victory and state emphatically that any effort to obstruct, slow down, divide workers, or otherwise undermine tangible benefits secured by workers would be similarly unprecedented and improper. Michigan legislators should honor the court’s recent decision and allow minimum wage increases to proceed without interference.”
The labor unions and numerous advocacy groups believe the Michigan Supreme Court’s ruling will reduce poverty, wage theft, and workplace harassment while supporting local economies and ensuring all workers are paid fairly. With the ruling, Michigan will be in lock-step with seven other states, including California and Minnesota, in abolishing the subminimum wage for tipped workers and ensuring that workers in tipped positions receive the full minimum wage with tips.
“The Michigan Supreme Court’s decision is a significant step toward restoring democracy and economic justice in the state,” said Saru Jayaraman, president of One Fair Wage, a national advocacy organization of nearly 300,000 service workers dedicated to raising wages for all workers. “The 2018 Republican-led legislature’s actions to prevent minimum wage increase and maintain the subminimum wage for tipped workers, youth, and workers with disabilities was a violation of the people’s rights.”
The incremental wage pathway for Michigan tipped workers, youth, and workers with disabilities is expected to rise to $12.48 in February 2025, $13.29 in 2026, $14.16 in 2027, and $15.00 in 2028. Tipped workers, who currently make $3.93 an hour, will see their wages increase to about $6 an hour next year. The tipped minimum wage will be 48% of the traditional minimum wage and will gradually increase to 100% over five years after 2025, bringing tipped workers on par with regular minimum wage workers.
While many are excited about the rise in the minimum wage scale, not all see it as a positive move for those in the restaurant industry.
“Restaurant owners and servers are rightfully worried about the devastating toll this court ruling is set to take on their livelihoods,” Senate Committee on Labor Minority Vice Chair Thomas A. Albert, a Republican, posted on his webpage on Wednesday, Sept. 18. “The harsh reality is that many restaurants and small businesses will not survive the economic blow that will be caused by this ruling. Thousands of people are on the verge of losing their jobs, and inflation-weary customers will face even higher costs.”
However, Chris Douglas, an economics professor at the University of Michigan, said the impact on restaurant-type businesses probably would not be as significant as some think.
“Some businesses have started to pay their workers more money in the last few years anyway, especially with a shortage of workers,” Douglas said. “You’re seeing fast food restaurants and other service sector jobs that might otherwise be at the minimum wage, in a normal economy, paying $15 and $16 per hour. So wages are rising rapidly, even without the minimum wage increase.”
Nevertheless, the labor union letter sent to Tate and Brinks took a partisan angle, imploring the two leaders to remember the history of the Democratic Party moving forward to thwart any efforts of Republicans to derail the legislation.
“Michigan Democrats have made historic progress in standing with working men and women, from repealing Right-to-Work and restoring prevailing wage to expanding the Elliott-Larsen Civil Rights Act,” the letter said. “Despite this progress, there are efforts by some to undermine historic gains secured by the Michigan Supreme Court’s recent “adopt and amend” decision. Given our state’s proud history of fighting to create, protect, and grow the middle class, these efforts are deeply troubling. We urge you to stand firm in support of these worker gains and reject any efforts to obstruct or undermine them.”
The letter continued. “The legislature should let the court’s decision stand as it is. The decision also safeguards Michiganders’ constitutional right to create change through the ballot petition process. In 2018, over 400,000 Michiganders signed petitions to raise the minimum wage and secure One Fair Wage for all workers. Michiganders have been clear on this issue and have used our state’s democratic process to make their voices heard. Their voices and our state’s democratic process must be respected.”
One Fair Wage’s top executive, Saru Jayaraman, agreed.
“Michigan legislators have a duty to honor this historic ruling and allow these wage increases to proceed without obstruction,” she said. “We applaud and stand with Michigan’s labor unions in rejecting any attempts to roll back these gains and eagerly await the full implementation of these hard-fought victories for workers across the state.”
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