What Michigan Employers Need to Know Today: Paid Sick Leave and Minimum Wage Paused; Sexual Orientation Protection Confirmed
Posted by chapteradmin on Aug. 3, 2022 / Legal Updates / Subscribe 0
By: Melissa Tetreau, Bodman PLC
The past few weeks have been full of employment law developments for Michigan employers. Two cases in particular have dominated the headlines:
Mothering Justice, et al v Dana Nessel, et al
First, on July 19, 2022, the Michigan Court of Claims reinstituted two 2018 ballot proposals that: (1) required employers of all sizes to provide up to 72 hours of paid sick leave to all employees on an annual basis; and (2) raised the minimum wage to $12 per hour. The Attorney General’s office appealed this ruling and asked the Court of Claims to stay enforcement of these laws pending the outcome at the Court of Appeals and, likely, the Michigan Supreme Court.
On Friday, July 29, 2022, the Michigan Court of Claims agreed to postpone the start date until February 19, 2023, recognizing that “there are justified concerns regarding the ability of employers and the relevant state agencies to immediately accommodate the changes required.” While this is a somewhat unconventional approach, the Court granted the stay “for a period of time equivalent to the time between the date of the Legislature’s adoption of [the Acts], i.e. September 5, 2018, through the effective date of those Acts, i.e., March 29, 2019, a period of 205 days.” If the case remains before the Court of Appeals or Michigan Supreme Court in February of 2023, we expect that those Courts will grant a further stay. In essence, enforcement action on these laws is not expected until we have a final ruling from the Court of Appeals and/or the Supreme Court.
While employers can retain the status quo for now, they should also use this time wisely. We recommend reviewing paid sick leave policies and wage structures in the event that compliance is required.
Rouch World LLC v Department of Civil Rights
In a somewhat less startling decision, the Michigan Supreme Court ruled on July 28, 2022 that the Michigan Elliot-Larsen Civil Rights Act prohibits discrimination on the basis of sexual orientation. For employers with 15 or more employees, discrimination on this basis has been prohibited under Title VII since the Bostock v. Clayton County decision by the U.S. Supreme Court in June of 2020. The Michigan Department of Civil Rights had advised employers in interpretive guidance that Michigan law similarly prohibits discrimination on the basis of sexual orientation, but this guidance was challenged as contrary to the language of the statute, the intent of the legislature, and prior Michigan case law.
The Michigan Supreme Court dismissed the challenge, finding that sexual orientation is “inextricably bound up with sex” because a person’s sexual orientation is generally determined by reference to their own sex. While this does not represent a significant change for employers who have been following the Michigan Department of Civil Rights’ interpretive guidance or for those
covered until Title VII, all Michigan employers now have a clear answer to this question – yes, the Elliot-Larsen Civil Rights Act prohibits discrimination on the basis of sexual orientation.
If you have questions about these decisions or your company’s compliance with these laws, contact your employment lawyer or the author of this article.
Melissa Tetreau is a member of the Detroit SHRM Legal Affairs Committee and a member at the law firm of Bodman PLC. She can be reached at [email protected].
Detroit SHRM encourages members to share these articles with others, inside and outside their organization, as long as its name and logo, and the author’s information, is included in the re-post of the article. August 2022
0 Comments