(The Center Square) – After failing to compromise in the final days of the Michigan lame duck session in 2025, Republicans and Democrats have proposed legislation to restore tipped wages and adjust the sick leave act before those taking effect in February.
The state 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.”
“House Republicans said we were going to fight for the working class and save our small businesses and tipped wage workers; now we’re delivering on that promise,” said John Roth, R-Interlochen, who introduced the legislation.“We still have time to fix this. The governor and Senate Majority Leader need to get on board so we can save these folks’ livelihoods before it’s too late.”
Currently set to go into effect Feb. 21, the minimum wage changes will 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.
Senate Democrats also decided to address the issue, 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, who sponsored the legislation. “I’m hopeful we can work together to find common ground to support service industry workers and small businesses here in Michigan.”
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.
“House Republicans were clear that with a Republican majority, the priorities of the people we all represent were going to be put first,” said Jay DeBoyer, R-Clay Township. DeBoyer introduced the legislation. “There is urgency to deliver a solution that respects every side of this equation, and that’s why these are the first bills introduced this year.”
A decision from the Michigan Supreme Court last July is allowing these proposals to go into effect.
A recent survey found that 82% of Michigan restaurant servers wanted to keep the tipping system in place, while 79% are worried about losing their job if the tip credit were eliminated.
“For months, restaurant servers, bartenders and operators have explained, advocated and pleaded to their elected officials that they did not ask for Michigan to eliminate the tip credit,” said the Michigan Restaurant and Lodging Association. “Save the tip credit and save 60,000 restaurant jobs from being eliminated.”
