The Michigan Supreme Court has reinstated the original voter-initiated minimum wage and paid sick leave laws, set to take effect on February 21, 2025. This decision mandates significant changes for employers statewide.

Starting February 2025, the minimum wage will increase to $10.00 per hour, rising annually to reach $12.00 by 2028, with future adjustments for inflation. The tip credit will also be phased out, reaching 100% of the minimum wage by 2029.

Additionally, the Earned Sick Time Act (ESTA) will expand paid sick leave rights. All employers must provide up to 72 hours of paid sick leave annually for larger employers and up to 40 hours of paid and 32 hours of unpaid leave for smaller employers. Leave must accrue as employees work, and front-loading is prohibited.

Employers are advised to review and update their leave policies and wage structures promptly to ensure compliance with the new regulations.