Michigan Supreme Court Decision Lands School Employee $544M in Backpay

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Michigan Supreme Court Decision Lands School Employee $544M in Backpay

Michigan’s Supreme Court ordered last month that the state return $554 million it withheld between 2010 and 2012 from 275,000 school employees’ and retirees’ paychecks to pay for two years worth of retiree health care, according to the Associated Press.

The court unanimously ruled Dec. 20 that the state failed to show how the 2010 law that withheld the funds was “reasonable and necessary to further a legitimate public purpose,” and that the withholding “substantially impaired” school employees’ employment contracts by involuntarily reducing their wages.

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