LANSING, Mich. — Michigan lawmakers passed a compromise bill Thursday night that would preserve the state's tipped wage credit, adjust scheduled increases to the minimum wage, and amend the requirement for most employers to provide paid sick leave.
On Wednesday the State House of Representatives passed Senate Bill 8 with a bipartisan majority and now heads to the Governor's desk for signature. That bill would change the minimum wage increases and keep the tipped wage scale. That a significant change from what lawmakers passed in 2018, then amended during the lame duck period.
Thursday night, lawmakers struck a deal on paid sick leave.
At 12:01 a.m. a ruling issued by the Michigan Supreme Court would have taken effect, kicking off a phased end to the tipped wage scale, a climb in the minimum wage to more than $10 an hour, and enacting the paid sick leave requirements.
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Senate Bill 8 was contingent on the passage of House Bill 4002, which amends the Earned Sick Time Act. Lawmakers were working throughout Thursday to negotiate a deal on earned sick time, ultimately sending the bill to Governor Whitmer’s desk before Friday’s deadline.
Senate Republican Leader Aric Nesbitt released this statement shortly after the bill passed:
“An activist Supreme Court put 50,000 Michigan restaurant jobs and 1 in 5 small businesses on the chopping block six months ago. Since then, Senate and House Republicans have been working overtime to stave off this economic disaster. Thankfully, in an effort led by Senate and House Republicans, a deal was reached to stop this unprecedented assault on Michigan workers.
“This deal isn’t ideal, but the Michigan Supreme Court put us in a position where we can’t make the perfect the enemy of the good. The days of putting the priorities of far-left special interests over Michigan families are gone. This fix is a step in the right direction.”
Sen. John DaMoose also released a statement:
“We had months and months and months to do this, yet here we are at the eleventh hour rushing to get this done. Issues of this magnitude deserve significant consideration, and Democratic leadership kicking the can down the road not only pushed this issue to the last minute, but it also sent a message to the people who asked their lawmakers to do something that their concerns weren’t a top priority.
“I was happy to see the tip credit get the attention it deserved late last week, but business owners, by and large, are far more concerned with what the overbearing sick leave changes would have meant for them. Because of that, I made my position clear: I would not support any proposals without a reform to the sick time law. Business owners in my district made their concerns abundantly clear and my vote was going to reflect that.
“While I am disappointed with the timeline of these changes, we were able to finalize a bipartisan agreement that brought everyone to the table. The deal wasn’t perfect, but what I can guarantee is that the solution we reached is far better than what would have happened had the Legislature chosen not to act.
“I’ll be patiently waiting for the governor’s signature this evening. I hope she chooses to join the bipartisan deal and do her part to prevent the economic devastation these new laws would have undoubtedly caused.”
Speaker of the House Matt Hall gathered members of the media just after 3 p.m. Thursday to provide an update on their efforts before the bill was passed.
“I feel optimistic that we’ll be able to get something done tonight,” he said.
“If we don’t have a deal, it will be an absolute crisis for our state.”
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Speaker Hall said that failure to reach a legislative compromise would have been devastating for the hospitality industry.
“This is really critical to every worker in Michigan and every small business in Michigan,” he explained.
“Workers are about to lose their jobs, small businesses are about to close. You’re going to see many restaurants close.”
Watch the full press conference by Speaker Matt Hall (R) below
Some of the key provisions of Senate Bill 8: The bill maintains the current tipped wage credit system, which allows employers to pay tipped employees a lower minimum wage as long as their tips make up the difference.
The standard minimum wage would increase to $15 by 2027 and be adjusted for inflation thereafter.
The tipped wage would remain the same for the rest of 2025, then increase to 50% of the minimum hourly wage over the next six years.
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