Facing a court ruling that mandates significant changes to minimum wage and paid sick leave laws, Michigan lawmakers are working to revise the legislation before it takes effect next month. Republican-led efforts in the House aim to slow the increase in the standard minimum wage and maintain lower wages for tipped workers, while also limiting paid sick leave provisions. The Democrat-controlled Senate is now grappling with these proposals, amidst warnings of potential restaurant closures and job losses if no adjustments are made.
Lawmakers are racing against time to amend tipped wages and paid sick leave policies following a court ruling that will dramatically alter state laws next month. The minimum wage in Michigan will gradually increase annually, culminating in a rate of $14.97 per hour by 2028. The tipped minimum wage will also see annual increases, eventually reaching parity with the standard minimum wage by 2030.
This comes after a court decision last year deemed the state's modifications to the 2018 Wage Act and Earned Sick Time Act unconstitutional. State House Republicans have introduced bills, House Bills 4001 and 4002, aimed at mitigating the impact of these impending changes. These bills propose a slower increase in the standard minimum wage, reaching $15 per hour by 2029, and maintain lower wages for tipped workers. Additionally, the bills seek to impose stricter limitations on paid sick leave compared to the current law set to take effect next month. Both bills garnered support from all Republicans and some Democrats in the House last week. Republicans from the lower chamber are urging the Democrat-controlled Senate to expedite action on these proposals. They warn that inaction will result in catastrophic consequences for the restaurant industry, including increased payroll costs passed onto consumers, rising prices that discourage dining out, and ultimately, potential restaurant closures, reduced staff hours, and job losses. Republican representatives John Roth and Donni Steele emphasized the urgency of addressing the situation, calling for bipartisan cooperation. Senate Minority Leader Aric Nesbitt echoed this sentiment, urging the Senate to swiftly consider the bills. However, Democratic Senate Majority Leader Winnie Brinks expressed cautious optimism, stating her willingness to find a balance that addresses concerns regarding tipped wages and paid sick leave. She emphasized, however, that she would not support any plan that jeopardizes the earned sick leave benefits of a million Michiganders. With only 11 more session days scheduled for the state Senate before the changes to tipped wages take effect, the pressure mounts for swift legislative action
MINIMUM WAGE PAID SICK LEAVE RESTAURANTS MICHIGAN LAWMAKERS COURT RULING
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