(The Center Square) – Michigan lawmakers are holding hearings this week to address minimum wage and paid sick leave legislation set to take effect in February – a bipartisan, last-ditch effort to address business concerns with the new regulations.
“House Republicans understand the gravity of this issue and what it will do to workers, small businesses and our local economies,” said State Rep. Bill G. Schuette in a press release. “Now we are following through with action.”
Schuette chairs the House Select Committee on Protecting Michigan Employees and Small Businesses, which was formed specifically to address these pieces of legislation.
This continues a controversy which first began in 2024, when Republicans and Democrats failed to compromise in the final days of the lame duck session.
Currently, the Senate and governorship are held by Democrats. Republicans took control of the state House on Wednesday, stating their priority will be finding a “fix for tip credit crisis.”
Currently set to go into effect Feb. 21, the minimum wage changes would also alter the wages for “tip credit” jobs, which allows employees to be hired for less than minimum wage but earn tips. The tip credit will be eliminated in stages, just as the minimum wage will be raised incrementally, starting in 2025 and going through 2029.
Some Democrats have also expressed interest in adjusting the legislation, with Senate Democrats introducing their own legislation that would stop the total phase-out of the tipped wage. It would also slow the coming increases in the minimum wage.
“Workers and business owners across Michigan are looking to leaders in Lansing to take action to save our tipped credit,” said Sen. Kevin Hertel, D-St. Clair Shores.
House Republicans also proposed legislation to prevent changes on earned sick leave policies statewide, which will require every Michigan business to provide paid sick leave to employees. This policy will also go into effect Feb. 21 and would apply to all employees, including seasonal, part-time, or temporary employees.
Some business owners, advocacy groups and workers have spoken out against the proposed legislation, with many speaking Tuesday during the first session of the House Select Committee on Protecting Michigan Employees and Small Businesses.
“This is not crying wolf. This is real,” said Steve LaLonde, founder of LaLonde’s Market. “We have projected that these changes will add $95,000 to our expense lines . . . Please consider the potential devastating unintended consequences to businesses, especially small family businesses, that are considered the backbone of support to their communities.”
Many surveys have predicted negative impacts on businesses throughout Michigan if the legislation goes into effect.
“Our restaurant workers, our family-owned small businesses and the future of thousands of jobs in our state will pay the price if the Legislature does not act,” Schuette said. “Lansing must follow the lead of House Republicans by working to get this done.”
The House bills to address the issue are both awaiting a committee vote, as are the Senate bills.
