If you are like most businesses, October is prime time for budget development. For those employees who earn close to the minimum wage, the question is how much will we need to pay them in 2023?
Let’s start with a little history. Back in 2018, there were two ballot initiatives, one started by Michigan One Fair Wage and one by Michigan Time to Care. The first advocated increasing the minimum wage rate to $12.00 per hour, the latter required employers to provide paid sick time. After successful petition drives to get the proposals on the ballot, the legislature adopted them prior to the election so they were not included in the vote. During the end of the year lame duck session, the legislature significantly modified both and implemented them as the Michigan Paid Medical Leave Act and the Michigan Improved Workforce Opportunity Wage Act. Both of those Acts were overturned by the July court decision which ruled them unconstitutional.
Where does that leave us? Michiganders now have until February 19th 2023, to come into compliance with the original ballot initiatives. While there is an appeal, it is not clear that anything will change. We will monitor the situation and keep you posted. In the meantime, you will likely want to budget for a $12.00 minimum wage instead of basing your increases off the existing $9.87 minimum.
