LANSING, Mich. — The Michigan Senate has approved a bill that would preserve the state’s tipped wage credit and increase the minimum wage.
It passed Thursday night with a bipartisan 20-12 vote. It now heads to the state House for consideration.
If signed into law, the bill would increase Michigan's minimum wage to $15 an hour by 2027, a year earlier than what's laid out in the current policy. The state's 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.
The news comes months after Michigan's Supreme Court issued a ruling that would have phased out the lower tipped wage starting this year. Many workers and business owners in the hospitality industry have voiced concerns that it would have led to significant financial losses.
“This bipartisan legislation is a result of the overwhelming advocacy from tipped workers who have spoken loudly and been in and out of the Capitol asking for our help. We were able to honor their voices while accelerating the minimum wage even faster than the original proposal,” says Senate Majority Leader Winnie Brinks. “Over the past several months as we met with hundreds of stakeholders, it became clear that there was no perfect solution that would satisfy all parties. But the core of our mission is to make sure Michiganders get a meaningful raise, and we made major strides in that direction tonight.”
“This bipartisan compromise is a successful first step in finding a solution to save the businesses that make Michigan great," says Senate Republican Leader Aric Nesbitt.
The Michigan Restaurant & Lodging Association (MRLA) applauded the bill’s passage with the following statement from President Justin Winslow:
"Today marks a significant victory for Michigan's hospitality industry and the tens of thousands of servers, bartenders, and restaurant workers who depend on the tip credit system for their livelihoods. Through exemplary bipartisan cooperation, our legislative leaders have demonstrated their commitment to preserving both jobs and businesses across our state.
"I want to express my deepest gratitude to the coalition of senators who worked tirelessly to craft this crucial compromise. Their dedication to understanding the real-world implications of this policy and their willingness to find common ground has helped avert what could have been a devastating blow to our industry.
"Special recognition must go to House Speaker Matt Hall, whose steadfast leadership and unwavering support for Michigan's hospitality sector proved instrumental throughout this process.
"We are also grateful to Senate Majority Leader Winnie Brinks for creating the environment necessary for meaningful dialogue and compromise to emerge and to Republican Leader Aric Nesbitt who has long been a champion of Michigan’s hospitality industry.
"I want to particularly acknowledge Senator Kevin Hertel for his consistent leadership and advocacy on behalf of restaurant servers, bartenders, and community restaurants. His work has helped protect not only the establishments in his home district of Macomb County, but businesses and workers throughout Michigan.
"This outcome demonstrates what can be achieved when legislators put partisan differences aside and work together for the benefit of Michigan's workers and small businesses. The preservation of the tip credit system will help ensure the continued vitality of our state's restaurant industry and the opportunities it provides for thousands of Michigan families."
Follow FOX 17: Facebook - X (formerly Twitter) - Instagram - YouTube
