(The Center Square) – A last-minute legislative compromise on an impending minimum wage increase appears primed for passage in Michigan.
The proposal comes just days before an already approved $1.92 boost and mandatory sick leave policies will take effect.
The new pending bill would raise the state minimum wage to $15 by 2027, but would no longer see a total phase out of “tip credit” jobs. Both would begin by raising the minimum wage on Friday to $12.48, up from $10.56.
“This agreement is a necessary compromise that gives immediate relief to our small businesses,” said Rep. Ron Robinson, R-Utica. “There is still a lot of work to be done, but this agreement gets us off the path that was leading towards disaster.”
This continues a controversy which first began in 2024, which Republicans and Democrats failed to settle in the final days of the lame duck session. Since then, both parties have proposed their own versions of bills to mitigate the coming changes, with the current plan being a compromise between those different versions.
The legislation currently on the books is set to go into effect on Friday, as would the newly proposed bill. If the latter fails to pass, the increases will also alter the wages for “tip credit” jobs, which allows employees to be hired for less than minimum wage, but still 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.
The other controversial legislation going into effect on Friday is changes on earned sick leave policies statewide, which will require every Michigan business to provide paid sick leave to employees. This policy would apply to all employees, including seasonal, part-time or temporary employees.
Rep. Bill G. Schuette, R-Midland, who chairs the House Select Committee on Protecting Michigan Employees and Small Businesses, said that legislators must work quickly to also address the sick leave issue.
“This is a positive step, but work remains to fix a disastrous sick time policy ahead of a Feb. 21 effective date,” Schuette said. “Without a legislative fix, many small businesses will be left understaffed, overwhelmed, and at risk of having to close their doors for good.”
Not everyone is happy with the potential changes to the legislation though.
“The people of Michigan have been waiting six years for a raise and to earn paid sick leave,” said Rep. Dylan Wegela, D-Garden City. “The bills proposed . . . fail to deliver for the working class.”
The Senate bill passed with a bipartisan vote of 20-12, with five excused. It now returns to the House for consideration, likely on Wednesday, before heading to Gov. Gretchen Whitmer’s desk. Whitmer has signaled she is open to a compromise.
Negotiations continue over sick leave legislation, with Republicans pushing for “no more stalling” from Democrats.
