The Michigan Supreme Court ruled 4-3 on Wednesday, striking 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.
Arguments were heard on the case in July after the Michigan Court of Appeals overturned a ruling from a lower court judge in 2023.
The appeals court voted 3-0 ruling 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.
According to the ruling, because the law would have gone into effect 205 days after enactment, it will now go into effect 205 days after July 31, 2024.
That means that the Wage Act and Earned Sick Time Act will go into effect Feb. 21, 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.
How people are reacting
Chris White of the Restaurant Opportunities Center of Michigan is one of the organizations that fought back when legislators changed the bill that was supposed to increase the minimum wages.
"When you increase your wages, you decrease your turnover of employees, you decrease absenteeism, and things of that nature. A good wage for workers is good for business," White said. "It's not just the restaurant industry. It's all employees."
Danielle Atkinson with Mothering Justice, said this is a world of difference.
"This changes tomorrow for so many people. They're able to take time off when they're sick. They're able to get themselves without thinking that they might not be able to afford their medication or not be able to afford rent," Atkinson said.
However, Justin Winslow of the Michigan Restaurant and Lodging Association, said the ruling will hurt businesses and tipped workers because prices will go up and tips will likely go down. He said 1,000 restaurants could close as a result.
"I think when you look at menu price increases necessary to offset some of these costs, you're looking at about a 25% increase. And that's coming after, you know, pretty heavy increase over the last couple of years because of inflation to menu prices. So it's going to be a shock to customers as well," Winslow said.
But the owner of Yum Village in Detroit says paying workers more, as he already does, can indeed work.
"If you have a business model that doesn't let you take care of the people who work for you, then that business model is wrong," Godwin Ihentuge said.
Winslow is hoping lawmakers can come to a compromise.
"This ruling did make clear there's nothing that precludes the legislature for finding a solution that makes sense for everyone involved. That's what we're focused on right now," he said.
What the dissenting judges said
Justices Elizabeth T. Clement, David Viviano and Brian Zahra dissented.
"There is certainly reason to be frustrated by the Legislature’s actions here: enacting laws proposed by initiative 2 petition to avoid ballot approval only to substantially alter them in the same legislative session. But nothing in Article 2, § 9 restricts the Legislature from doing so. And as tempting as it might be to step into the breach, this Court lacks the power to create restrictions out of whole cloth. That power remains with the people, as our Constitution dictates. I therefore dissent. I would have affirmed the judgment of the Court of Appeals," Clement wrote in her dissent.
Michigan League for Public Policy President and CEO Monique Stanton released a statement that reads, "We applaud the Michigan Supreme Court for their decision today to rectify this injustice and show their strong support for families, communities and the economy. The ‘adopt and amend’ scheme of the Legislature in 2018 usurped the will of Michigan voters, and this ruling will not only help restore peoples’ faith in the system, it will help lift up families and kids across Michigan."
