LANSING (WWJ) — The Michigan House of Representatives on Thursday passed a package of bills that would preserve the state's tipped wage system for restaurant workers and limit the scope of the proposed sick leave laws set to take effect next month.
The tipped wage bill passed by a vote of 63-41, with all 58 Republicans and five Democrats voting in favor. The paid sick leave bill passed 67-38, also with full support from Republicans.
The legislation was proposed after a July 31, 2024 order from the Michigan Supreme Court that ruled changes sought by a 2018 ballot initiative — which were adopted by the Legislature and then amended before becoming law — would take effect on Feb. 21.
As many Michiganders spoke out in recent months about the law and its potential effects on the industry and economy at-large, both chambers of the legislature introduced bills to address it before next month's deadline.
Under current Michigan law, tipped workers are allowed to be paid $3.93 per hour — well under the state's current minimum wage of $10.33. Under the law slated to take effect next month, tipped workers' minimum wage would gradually increase to about $15 per hour by 2023.
That's an increase that many restaurant owners, industry experts and Republican lawmakers predicted would have "catastrophic" effects across the state.
The GOP's bills passed Thursday — sponsored by Republican state Reps. John Roth of Interlochen and Jay DeBoyer of Clay Township — would gradually increase the state's traditional minimum wage to $15 an hour by 2029 and would keep the tipped minimum wage at 38% of the state's minimum wage.
The legislation would also limit paid sick leave laws to affect only businesses with more than 50 employees.
Both bills now head to the Democratic-controlled Senate.
Republican representatives estimated Thursday the current law slated to take effect in February would result in 60% of restaurants laying off workers and 20% of them shutting down.
Democrats, meanwhile, feel the Republicans' proposal doesn't do enough to help Michigan workers.
"This bill seeks to trap them in jobs that fail to cover the cost of living, undermining their ability to provide for themselves and their families," said Rep. Helena Scott.
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