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State Moves To Block Cities From Increasing Minimum Wage Or Requiring Paid Sick Leave

Michigan Gov. Rick Snyder (R) CREDIT: CARLOS OSORIO, AP
Michigan Gov. Rick Snyder (R) CREDIT: CARLOS OSORIO, AP

Michigan’s legislature passed a bill this week that blocks any cities in the state from passing their own minimum wage increases or paid sick leave requirements.

The text of the bill states that “the regulation of the employment relationship between a nonpublic employer and its employees is a matter of state concern,” and stipulates that local governments won’t be given the authority to pass any requirements like minimum wages or paid leave that are higher than what’s already in place at the state level. It now awaits the signature of Gov. Rick Snyder (R). A spokesperson for the governor said in an email, “Gov. Snyder and his team are thoroughly reviewing the bill before determining whether it should be signed into law. Governor has said he appreciated that the Legislature included in the bill provisions that would protect communities that have existing laws in place.” Local advocates expect that he will sign it.

If Snyder does sign the bill into law, Michigan would become the 12th state in the country to ban local governments from passing paid sick leave or minimum wage requirements, according to Ellen Bravo, executive director of Family Values @ Work. While just three states had these laws on the books as of 2012, eight have passed them since 2013.

More could also join in soon. Missouri similarly passed a preemption bill blocking local governments from enacting their own requirements, which is waiting for Gov. Jay Nixon (D)’s signature. And in Pennsylvania, a bill that would roll back the paid sick leave law passed the state legislature this year.

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According to Bravo, advocates have stopped similar legislation in Montana, South Carolina, and Virginia this year. And the progress for both cities and states requiring paid sick leave has ramped up significantly in the past year and a half. Twenty-three have now passed, more than half of them since the beginning of 2013, including four states and 19 cities.

While critics worry that these laws will hurt local economies, the evidence doesn’t support that idea. Employers report that the laws have been easy to comply with and have even brought some benefits, such as lower turnover and higher productivity, and most now support the laws. Job growth, meanwhile, has been stronger in some places after the laws went into effect.

Update:

This post has been updated with a statement from Gov. Snyder’s office.

Update:

Gov. Snyder signed the preemption bill into law on June 30.