Seyfarth Synopsis: Yesterday, the Michigan Court of Appeals reversed a July 2022 lower court decision that would have reinstated the 2018 Michigan Earned Sick Time Act on February 20, 2023.  As a result, barring an appeal of the decision or further action by the State legislature, the current Michigan paid sick leave and minimum wage laws will remain in effect.

 What You Need To Know:

• Michigan employers are not required to update their paid sick leave policies and practices to comply with the 2018 Michigan Earned Sick Time Act (“ESTA”) at this time.
• Paid sick leave obligations for employers with Michigan operations remain governed by the current law, the Paid Medical Leave Act (“PMLA”), beyond February 20, 2023.

On January 26, 2023, the Michigan Court of Appeals issued a long-anticipated decision on the constitutional validity of the Michigan PMLA, a law that amended and constituted a major overhaul of the 2018 Michigan ESTA.  In a 3-0 decision of Mothering Justice v. Nessel, No. 21-000095-MM (Mich. Ct. App. January 26, 2023), the Court of Appeals overturned a July 19, 2022 decision by the Michigan Court of Claims that held that the adopt-and-amend process the Michigan legislature used to implement the PMLA violated the Michigan Constitution.  The decision would have resulted in substantial changes to the statewide paid sick leave and minimum wage requirements for employers beginning February 20, 2023.

The Court of Appeals, however, reversed the lower court ruling and held that there is no State constitutional provision precluding the Michigan legislature from adopting and then amending an initiative proposal during the same legislative session, which the legislature did in December 2018 when it amended the ESTA by adopting the PMLA.  As a result, the Michigan paid sick leave and minimum wage standards currently in effect will remain in effect beyond February 20, 2023.  It is unclear at this time whether the Court of Appeals’ decision will be appealed to the Michigan Supreme Court or whether the 2023 State legislature will introduce a bill that amends the PMLA during the current legislative session.

For more background on the history of paid sick leave mandates in Michigan, see our prior alerts here and here.  Further information on the PMLA is available here.

We will continue to monitor and provide updates on Michigan paid sick leave developments and on any subsequent changes as they occur.

As the paid leave landscape continues to expand, companies should reach out to their Seyfarth contact for solutions and recommendations on addressing compliance with the PMLA and sick leave requirements generally.