The Michigan House passed a Bill to preserve the minimum wage law, which was set to take effect on Feb. 21.
Senate Bill 8, which aims to halt a court-ordered phase-out of the lower minimum wage for tipped workers, was approved last week by the Senate.
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The bill 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.
Under the legislation, Friday’s standard minimum wage would still rise to $12.48 per hour. But it would reach $15 an hour by 2027 instead of 2028.
Current law requires tipped workers to be paid 48% of the minimum hourly wage starting Friday, which will rise to 100% in 2030.
“A total of 2,194,015 Michiganders voted for the 69 legislators in the Michigan House of Representatives that today voted for the bipartisan compromise legislation to preserve a tip credit in Michigan. That is what representative democracy from actual Michiganders looks like. That is what prioritizing real-world impacts over scare tactics and virtue signaling from out-of-state interest groups looks like. That is what leadership looks like.
We thank Speaker Matt Hall for his continued commitment to restaurant workers and community restaurants and remain hopeful that a deal comes together on Thursday regarding paid leave mandates that will prevent an impending catastrophe."
Justin Winslow, President & CEO of the Michigan Restaurant & Lodging Association
Senate Bill 8 has been met with mixed emotions. The restaurant industry has expressed approval, while labor groups have expressed discontent, viewing it as a betrayal of workers.
The bill will head to Michigan Governor Gretchen Whitmer’s desk after a procedural motion in the Senate.
The legislation is tied to House Bill 4002, which addresses paid sick leave.
Negotiations on paid sick leave are ongoing between Senate and House leaders.
Both bills would have to be signed into law for Senate Bill 8 to take effect.
