LANSING (WWJ) — The Michigan House of Representatives on Wednesday passed a bill that scales back the state’s impending minimum wage laws — including changes to the tipped minimum wage — before they take effect Friday.
Under the bill, the state’s minimum wage is set to increase to $12.48 an hour, while additional increases will be phased in over the next three years until hitting $15 in 2028. Additional increases are also included through the year 2030, with those planned to be set at the standard inflation adjustment.
The House bill will increase the tipped minimum wage to $4.74 beginning Friday, increasing it in yearly increments to $6.30 by the start of 2027. It will then see additional increases until it reaches 50% of the standard minimum wage by 2031.
A version of that legislation has also passed the Michigan Senate, but the bills aren’t headed to Gov. Gretchen Whitmer’s desk for signature just yet, as they are tie-barred to pending paid sick leave legislation currently being negotiated in both chambers.
The bill signed Wednesday will not take effect unless the sick leave bill is also passed.
This comes days ahead of a Feb. 21 deadline set by a 2024 Michigan Supreme Court ruling for increases to the minimum wages. The state’s high court ruled that changes sought by a 2018 ballot initiative — which were adopted by the Legislature and then amended before becoming law — would take effect on that date.
The legislation passed Wednesday keeps the state’s system that allows workers who receive tips — such as servers and bartenders — to earn a lower minimum wage with the idea that tips from customers make up for the difference in the regular minimum wage.
Lawmakers in favor of keeping the tipped minimum wage argued the law set to take effect under the Michigan Supreme Court ruling would have "catastrophic" effects across the state, leading to restaurant closures and job losses.
This is a developing story. Stay tuned to WWJ Newsradio 950 for the latest updates as they become available. >>> LISTEN LIVE!