Legislation to preserve the tipped wage passed the Democratic-controlled Senate on Thursday, Feb. 13. The House, where Republicans hold the majority, could take up Senate Bill 8 next week.
“It’s incredibly disappointing. Some so-called Democrats sold out workers in Michigan and gave big business and Lansing Republicans a big smooch for Valentine’s Day, literally days before workers were going to get a raise,” One Fair Wage Senior Advisor Dave Woodward said.
Senate Bill 8 calls for the tipped minimum wage to remain at 38% of the standard minimum wage this year. It would rise annually, topping out at 50% in 2031.
The law, set to go into effect next Friday, phases out the tipped wage over several years.
“Think about how much menu inflation you’ve seen at restaurants over the last few years, which is a direct result of commodity inflation. Picture, if you also didn’t have the ability for a tip credit to exist, that’s going to increase that much more. It is a real disincentive to employ individuals in this industry,” said Michigan Restaurant and Lodging Association President and CEO Justin Winslow.
The standard minimum wage is set to rise to $12.48 per hour on Feb. 21. That would still be the case if Senate Bill 8 becomes law. The difference is the minimum hourly wage would rise more each year with the new legislation.
Senate Bill 8 could be taken up by the House as early as Wednesday.
“We are closely monitoring the legislation. We are glad progress is being made and are hopeful for even more,” said Whitmer Press Secretary Stacey LaRouche in a statement.
The bill’s fate is tied to the passage of House Bill 4002, which would amend the Earned Sick Time Act. House Bill 4002 passed the House on Jan. 23.
The Senate is expected to tackle paid sick leave next week.
