PA 113 of 2023 Repeals PA 54

On July 26, 2023, Governor Whitmer signed House Bill No. 4044 as Public Act 113 of 2023. Sponsored by Representative Matt Koleszar (D – Plymouth), the bill repeals Section 15b (MCL 423.215b) of the Public Employment Relations Act, commonly referred to as PA 54. The repeal eliminates the punitive measures placed on public sector employees by PA 54 when their collective bargaining agreement (“CBA”) expires. (Note: PA 54 was amended by PA 332 of 2014 (423.215b(4)(a)-(c)) to exclude police officers.)

Since June 8, 2011, during the period of time between the expiration of a collective bargaining agreement and the ratification of a successor agreement, PA 54 prohibited public sector employers from:

• Paying employees step, longevity, or “lane-change” wage increases;
• Bearing the increased costs for employee health and prescription, dental, vision, or other insurance benefits;
• Providing retroactive payment of wage and benefit increases.

The repeal of PA 54 reestablishes Michigan law as it existed before 2011. Prior to the enactment of PA 54, Michigan law required provisions of a CBA that were mandatory subjects of bargaining (defined generally as rates of pay, hours of employment, and other terms and conditions of employment (see MCL 423.211)) in an expired CBA continued until impasse or a successor CBA was negotiated.

PA 113 of 2023 restores the balance of power between unions and public sector employers and will take effect 91 days after the adjournment of the current legislative session (anticipated to be in March of 2024).