Lansing, MI – In recent weeks, lawmakers in Michigan have been engaged in a contentious debate regarding adjustments aimed at gradually increasing the minimum wage in the state to $15 over the coming years.
The proposal, scheduled to take effect on February 21, will modify the wages for positions that utilize a “tip credit,” permitting employers to pay employees below the minimum wage while they earn tips. The tip credit will be phased out gradually, mirroring the incremental increase of the minimum wage, beginning in 2025 and continuing until 2029.
House Republicans are committed to safeguarding the interests of restaurant workers, prioritizing this matter as they approach the conclusion of the legislative session. They took the drastic step of leaving the session last week, declaring they would not come back until there is a willingness from the other side to revisit the conversation.
The House finds itself at an impasse, as several House Democrats are choosing not to return for voting, resulting in an insufficient number of lawmakers to advance any legislation.
On Wednesday, Senate Republicans echoed the sentiments of their House counterparts, pressing Senate Democrats to “get back to work” and take decisive action.
House Minority Leader Matt Hall, R-Richland Twp., expressed that Republicans are frustrated with Democrats attempting to advance progressive legislation in the final days of the year.
He mentioned that there is also a desire among Republicans to address legislation aimed at safeguarding earned sick leave policies across the state, mandating that all businesses in Michigan offer paid sick leave to their employees. The new policy is set to take effect on February 21 and will encompass all employees, which includes seasonal, part-time, and temporary staff.
House Republicans remain inactive on their policy proposals and have not yet resumed the legislative session. Democrats are resisting this action from Republicans, seizing the final days before losing their House majority to advance 58 pieces of legislation.
A ruling from the Michigan Supreme Court last July is paving the way for all of these proposals to be implemented.
Numerous restaurant employees and business proprietors have united with Republicans to voice their opposition to the proposals regarding minimum wage and sick leave, contending that these measures could result in considerable job losses. A new survey reveals that a significant majority of restaurant servers in Michigan, 82%, prefer to maintain the current tipping system, with 79% expressing concerns about job security if the tip credit were removed.
The organization contends that attempts to abolish the tip credit have resulted in job losses and business closures, particularly in a sector that has been experiencing job declines throughout 2024.
Advocates for increasing the state’s minimum wage have expressed that this change has been overdue.
