Lawmakers are racing against the clock to modify the minimum wage and paid sick leave laws before they take effect on Feb. 21.
Last summer, the Michigan Supreme Court set the deadline when it ruled that the GOP-controlled legislature violated the state constitution by adopting and diluting voter-led initiatives on minimum wage and paid sick time in 2018.
“I think our best shot at getting good policy done is sticking to that Feb. 21 deadline and working around the clock to get it done,” said House Speaker Matt Hall.
Update: Michigan Senate passes bill to amend minimum wage, tipped wage increases ahead of deadline
Republicans control the House, while Democrats hold the majority in the Senate.
“I believe we can achieve a balance that ensures workers have strong rights, employers can run their businesses, and the spirit of the initiative petition—which received hundreds of thousands of signatures—is upheld,” Senate Majority Leader Winnie Brinks stated.
Michigan Governor Gretchen Whitmer urges Hall and Brinks to reach a bipartisan agreement.
“If they are unable to reach an agreement by this week, she also encouraged them to pass a short-term extension through July 1. This would create more space for the House and Senate to continue negotiations while we work on the budget,” the governor’s office said.
The minimum wage is set to rise from $10.56 to $12.48 on Feb. 21, 2025, and will continue to increase annually, reaching $14.97 on Feb. 21, 2028.
On Friday, Feb. 21, 2025, tipped workers will be paid 48% of the minimum hourly wage.
The tip credit, or subminimum wage for tipped workers, will be phased out over the next five years. By Feb. 21, 2030, tipped workers will earn 100% of the minimum wage.
One Fair Wage led the push for the minimum wage ballot initiative.
“It was Republicans in the legislature that stopped workers from getting the wage increase they deserve. There is no reason to delay,” One Fair Wage Adviser Dave Woodward said.
Opponents argue that tipped workers will be adversely impacted by the phasing out of the tipped wage.
“There is no way we should have had to wait until this deadline. In fact, most businesses can’t wait to enact major changes until five seconds before and just flip the switch. So, a lot of this stuff is already starting to go in motion. It’s going to be very disruptive. But we still have time to stop it, fix it, and come to some kind of compromise,” said Save MI Tips Spokesperson John Selleck.
While discussions continue in Lansing, restaurant and bar owners are making contingency plans.
Joe Louis Southern Kitchen, located in Detroit‘s New Center neighborhood, may have to raise menu prices.
“Slight increases, but with that, you get excellent service each and every time you come,” said Paul Driscoll, a manager and server at the restaurant.
Batch Brewing Company, located in Detroit’s Corktown neighborhood, is celebrating ten years in business.
“The first five years were glorious. The second five years were an adventure,” said Owner Stephen Roginson.
He fears more challenges are ahead.
“I’m entirely in support of the minimum wage continuing to go up. I just don’t want to see the tipped credit loss,” said Roginson. “The paid time off is a question mark. We will see how that looks.”
Starting Feb. 21, employees of small businesses can accrue 40 hours of paid earned sick time per year.
Employees of large businesses can accrue 72 hours of paid earned sick time per year.
Employers will have the option of offering more paid sick leave than designated by the law.
