(Source: MIRS.news, Published 07/19/2022) The Republican-led Legislature's adopt-and-amend strategy to thwart ballot initiatives related to minimum wage and accrual of paid sick leave violated the Constitution, a judge ruled Tuesday.
During arguments in June, Court of Claims Judge Douglas Shapiro questioned whether the Legislature's adopt-and-amend actions on Public Acts 368 and PA 369 was manipulative, and Tuesday, he arguably answered that question with a "yes."
Shapiro, a 2009 appointee of Democratic Gov. Jennifer Granholm, said the Legislature has three options to address a law proposed through the initiative process – enact it; reject it; or propose an alternative.
"Once the Legislature adopted the Earned Sick Time Act and the Improved Workforce Opportunity Act, it could not amend the laws within the same legislative session," Shapiro's 25-page opinion reads. "To hold otherwise would effectively thwart the power of the People to initiate laws and then vote on those same laws – a power expressly reserved to the people in the Michigan Constitution."
As a result, PA 368 and PA 369 of 2018 are voided and the initiatives adopted by the Legislature as 2018 PA 337 and PA 338 – which were the result of statewide petition campaigns – remain in effect, the judge ruled.
Mark Brewer, a former chair of the Michigan Democratic Party and attorney who represented the plaintiffs led by Mothering Justice and Michigan One Fair Wage, called the decision a "great victory."
Saru Jayaraman, president of One Fair Wage, said Tuesday's opinion "vindicated the rights" of millions of tipped workers and voters who demand workers be "paid a full, livable wage with tips on top."
"So many states are about to follow - given the Great Resignation. And Michigan's minimum wage will continue to go up, because we at One Fair Wage have collected enough signatures to force the wage up to $15 an hour in 2024. Today we made history," she said in a statement.
However, Wendy Block, Michigan Chamber of Commerce's vice president of Business Advocacy and member engagement, said the organization is "stunned" by the ruling and she expressed concern "about the crippling effect" the ruling could have on Michigan employers and employees.
"The talent shortage has employers already paying historic wages and benefits – all while facing rising inflation and supply chain chaos – just to keep the doors open," she noted. "Employees should be equally concerned about the cost pressures this decision will place on businesses and the impact it could have on employee hours and benefits."
Michigan One Fair Wage circulated the petitions in 2018 to have voters consider a proposal to increase the minimum wage to $12 an hour by 2022 and tie the rate to inflation while Michigan Time to Care backed a proposal requiring all employers to provide paid sick time to workers.
The initiatives, however, did not see a statewide vote as the Legislature adopted two initiatives first and then moved after Election Day to change the laws with a simple majority.
Had the initiatives gone to a statewide vote, any future change would have required a three-fourths super majority support.
The Republican-led Legislature slowed the minimum wage increase so it increased to $12.05 by 2030. It removed the inflation connection and changed the sick-leave law to exempt small businesses.
Shapiro held the changes "substantially amended the original laws proposed" and as a result, thwarted the people's intent.
Attorney General Dana Nessel called the order "a victory" for Michigan residents.
"The actions undertaken by the Legislature in 2018 denied the will of the people and distorted the purpose of Michigan’s citizens' initiative process," she said in a statement. "This is a victory for Michiganders and for democracy.”
House Republican spokesperson Gideon D'Assandro said the chamber is reviewing the decision.
