Michigan lawmakers are racing to meet a Friday deadline to avert minimum wage and paid sick time rules that business owners say will hurt the economy and tipped workers worry will reduce their pay.
The state’s minimum wage and paid sick time requirements are set to change under a state Supreme Court ruling that resolved a long, messy fight over two 2018 ballot measures.
The Republican-controlled House on Wednesday voted 69-40 to approve a bill that would raise the general wage floor to $15 an hour by 2027 — a year earlier than under the pending rule change — and raise the minimum wage employers must pay tipped workers to half the general minimum by 2031. The pending rule change would phase out the tipped minimum wage by 2030.
The bill, a bipartisan compromise that has already been approved by the Democratic-led Senate, now goes to Gov. Gretchen Whitmer (D) for her signature.
“The reality is we are serving in a divided government and we must work together,” Rep. Jamie Thompson (R) said on the House floor before the vote. “Senate Bill 8 is the result of working together.”
But the bill won’t go into effect until the House and Senate also pass legislation adjusting the paid sick leave rules set to go into effect Friday.
The House earlier this month passed a bill that would allow workers to accrue one hour of sick time for every 30 hours worked, as the pending rule change would. The bill would help employers by tightening eligibility requirements, such as by exempting seasonal workers, and adding clarifying language, such as by stating that employers can adopt more generous sick time policies if they choose.
A similar proposal is being considered in the Senate.
“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, head of the Michigan Restaurant and Lodging Association, said in a statement.
Eleven states will require employers to pay hourly workers $15 an hour or more by the end of 2025. Seven states — Alaska, California, Minnesota, Montana, Nevada, Oregon and Washington — do not allow employers to pay tipped workers less than the general minimum if they make at least minimum wage when tips are included in their pay.