Starting next year, Michigan employers will need to pay workers more than $12 an hour, following a landmark ruling from the state Supreme Court.
The 4-to-3 decision reignited Michigan's 2018 ballot initiatives on the minimum wage and paid sick leave.
The wage will be $10 per hour, plus an adjustment for inflation since 2018. The ruling should mean higher pay for more than 800,000 workers in Michigan, including a 48% increase for tipped workers.
Saru Jayaraman, president of the advocacy group One Fair Wage, said her organization has been working for more than a decade to see this change in Michigan.
"By 2028, 1.2 million workers will get a raise," Jayaraman pointed out. "But it also means that Michigan becomes the first state in 40 years, and the first state east of the Mississippi, to end the subminimum wage for tipped workers, which is a direct legacy of slavery."
The head of Michigan's Restaurant and Lodging Association called the court decision "tone-deaf" In a statement, Justin Winslow said 40% of full-service restaurants in Michigan are already unprofitable and predicted the decision could force more of them to close permanently, eliminating up to 60,000 jobs.
However, other states are following suit. Jayaraman pointed out states with pending legislation to raise their minimum wages include Colorado, Illinois, Maryland, Massachusetts and Ohio.
"In total, we actually have this moving right now in a dozen states around the country," Jayaraman observed. "But Michigan is the first, the first to go."
The ruling also paves the way for extensive changes in worker compensation and benefits in Michigan. Those will not take effect until late February next year. In the meantime, Jayaraman added her group is also advocating for an increase in the federal minimum wage, which has been $7.25 an hour since 2009.
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Corrections officers and their supporters are rallying in Lansing today, urging lawmakers to stop stalling and act on bills to give them the same pension benefits as state police.
Under the legislation, corrections officers would move from a 401(k)-only plan to a hybrid pension system shared with state police, a step aimed at improving hiring and retention in the Corrections Department.
Byron Osborn, president of the Michigan Corrections Organization, said he questions the integrity of the legislative process and is frustrated the bills passed both chambers with bipartisan support last year but are still being withheld from Gov. Gretchen Whitmer's desk.
"We believe 100% that this was an orchestration of sorts," Osborn contended. "We don't know who orchestrated it, or why. But the fact remains that nobody has offered up any reason as to why these bills still have not been sent to the governor."
Osborn noted the Senate filed a lawsuit against the House for not sending the bills to the governor and they are awaiting a Michigan Court of Appeals date. Meanwhile, Rep. Matt Hall, R-Richland Township, the Speaker of the House, said he is seeking a legal review before advancing bills passed in the previous session.
Osborn emphasized Michigan's corrections system has faced a staffing crisis for almost a decade and his organization has spent years working with lawmakers to fix the retirement plan for their officers. He warned the delay in passing the pension bills is hurting their recruitment efforts.
"We've got a number of our facilities running anywhere from 25% to 35% short, which as you can imagine is causing just a ton of mandatory overtime," Osborn pointed out. "It's causing more and more people to resign and find other jobs because they just can't keep up the pace and it's dangerous."
As of early this year, data showed the Michigan Department of Corrections had more than 2,200 job vacancies, including nearly a thousand corrections officer positions. The staffing shortage drove overtime costs to almost $120 million in fiscal year 2024.
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Minnesota labor groups said to keep the state's economy running, they need a more welcoming tone from policymakers. At a rally Tuesday, many members argued it is not what is happening under the Trump administration.
A coalition of unions gathered at the State Capitol as part of the "Hands Off" movement, which has led almost daily demonstrations in cities across the U.S. The events highlight the downsizing of federal agencies and aid since President Donald Trump returned to office.
Shari Wojtowicz, president of the Minnesota State Council of the Communications Workers of America, said it is not only about their members.
"Union rights are under attack but that means workers' rights in general are under attack," Wojtowicz asserted. "We just really wanna make sure that we're highlighting the fact that workers' rights are human rights."
The union pointed to the administration's handling of the National Labor Relations Board. The union said it is worried the board will not have the capacity to help oversee union elections, potentially slowing collective bargaining.
Some White House actions dealing with labor have wound up in the courts. The administration deems its moves necessary for government accountability and efficiency.
The union represents workers who install broadband infrastructure all over the country. State and federal investments are already providing the funding needed to close broadband gaps and Wojtowicz noted the next step is to ensure safe working conditions for crews.
"Companies got money to lay that infrastructure and in some instances, they're hiring subcontractors or contractors of contractors, so there's less oversight," Wojtowicz explained.
She added unions secured new training standards at the state level last year but in this year's legislative session, there have been attempts to roll back some of the language in the law. The unions said it is another reason why wider federal enforcement of labor protections is needed.
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At least 500 workers in Indiana's recreational vehicle industry are facing layoffs as the mobile home segment of the economy slows down and Gov. Mike Braun said now is the time to prepare.
He spoke at the RV Industry Power Breakfast in Elkhart and pointed to rising interest rates, tariffs and job losses as key factors in the RV slowdown. He said mobile home makers have survived hard times before and urged them to plan and stay lean.
"Perseverance, running your business like you're going broke, you'll never go broke," Braun asserted. "Because one of my relatives in the poultry business said, 'If you run it efficiently, you're going to find more opportunity coming out the other end of adversity than you can ever imagine.'"
Braun reflected on his own experience as a small-business owner during past economic crises and argued companies grow stronger by treating slowdowns as turning points.
While Braun expressed optimism, RV makers still face pressure. Job cuts, high supply costs and slow demand pose challenges.
"Everything we're going through is an opportunity to get through the trial and tribulation," Braun continued. "We'll get it right eventually in D.C. but I'm going to give you a state government that is going to be run like a business. It's going to stress freedom and opportunity, not contrived results from governments."
THOR-owned companies plan to cut jobs in Howe, Elkhart and Middlebury starting June 20. The RV maker, based in nearby Sturgis, Michigan, said the layoffs will affect several Indiana plants and may be temporary.
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