On the Michigan Supreme Court Restoring a 2018 Minimum Wage Ballot Initiative Increase

A Win for Underpaid Workers and All Michiganders

Washington, DC—The following is a statement from Rebecca Dixon, president and CEO of the National Employment Law Project, on the Michigan Supreme Court’s decision in Mothering Justice v. Attorney General holding that the 2018 state legislature’s gutting of popular minimum wage and paid sick days ballot initiatives was unconstitutional:

“Today the Michigan Supreme Court restored a broadly popular minimum wage increase and expansion of paid leave benefits, declaring unconstitutional a maneuver by the former Republican-controlled legislature that had derailed and watered down the increases proposed in a worker-backed ballot initiative.

“The ruling makes Michigan the eighth state to raise pay for tipped workers by ending the unfair subminimum wage that has long applied to them.

“In November, Arizonans will face a similar choice as the Republican-controlled legislature there put on the ballot a proposed constitutional amendment to lower the minimum wage for tipped workers. The legislature is also fighting a second worker-backed ballot initiative to raise the minimum wage and end the subminimum wage for tipped workers.

“The National Employment Law Project (NELP) praises today’s decision by the Michigan Supreme Court that the 2018 Republican-controlled legislature’s use of the ‘adopt and amend’ tactic, where it adopted provisions in popular minimum wage and paid sick days ballot initiatives only to water them down, was unconstitutional.

“The 2018 minimum wage ballot proposal, which voters would have likely approved, would have raised the state’s minimum wage to $12 by 2022 and eliminated the subminimum wage for tipped workers. Raising wages is a critical step toward building a good-jobs economy, where all jobs pay a living wage and one job is enough to pay the bills. Instead, the legislature adopted provisions that slashed wage increases so that the minimum wage would not reach $12 until 2030; and it kept the subminimum wage for tipped workers in place.

“Today’s ruling is a victory not only for the state’s underpaid workers who stand to benefit, but for all Michiganders, as it affirms the right of voters to directly engage in policymaking through citizen-initiated measures. Indeed, the ruling strengthens the democratic process and prevents future legislatures from cynically adopting and then gutting ballot initiatives they dislike.

“It is also a historic win. Today, Michigan becomes the first state east of the Mississippi River to eliminate its subminimum tipped wage and joins seven other states with ‘One Fair Wage’ laws. Prior to Michigan, the last state to approve a phase-out of its tip credit was Minnesota in 1984.

“Now that this case is settled, approximately 494,000 workers in Michigan will see a pay increase. Jobs, wages and the economy are among the top issues for Black, Latinx, and young voters, according to recent polls.

“As an organization dedicated to building a just and inclusive economy where all workers have expansive rights and thrive in good jobs, NELP is unequivocally committed to supporting underpaid workers and to advocating for policies that raise the minimum wage, because all people and families deserve wages that they can live and thrive on.”

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