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Thursday, February 27, 2025

Michigan House votes on plan addressing tipped wages amid court ruling

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State Rep. Ann Bollin | Michigan House Republicans

State Rep. Ann Bollin | Michigan House Republicans

State Representative Ann Bollin, alongside the Michigan House, voted in favor of legislation aimed at safeguarding tipped wages and supporting small businesses within the state. The bipartisan-supported plan addresses concerns from workers and employers about a forthcoming Michigan Supreme Court decision, which is scheduled to be implemented on February 21.

Bollin expressed concern over the potential economic impact of the court's decision, stating, “The drastic, one-size-fits-all mandates from the Supreme Court decision would devastate Michigan’s economy.” She emphasized her commitment to protecting livelihoods and maintaining flexibility for those working in affected industries.

Without legislative intervention, the Supreme Court ruling will introduce new mandates for earned sick time that could pose challenges for small businesses while removing flexible options for employees. Additionally, it would eliminate the tipped wage system that allows restaurant servers and bartenders to earn more than minimum wage through tips.

House Bill 4001 aims to preserve this current tipped wage structure. According to proponents of the bill, many service industry workers report higher earnings under this system compared to standard minimum wage jobs. Furthermore, the bill seeks to gradually increase Michigan's minimum wage without compromising small business flexibility.

In conjunction with House Bill 4001, House Bill 4002 proposes amendments to the Earned Sick Time Act. This includes clarifying legal requirements and offering small businesses and their employees greater flexibility in determining suitable paid sick leave benefits. The proposal ensures only businesses with a workforce of 50 or more are mandated to provide paid sick leave, thereby alleviating financial pressure on smaller employers.

Bollin remarked on the importance of job security and business sustainability: “Hardworking people shouldn’t have to worry about losing their jobs or seeing their favorite local businesses shut down.” She believes these legislative measures will help maintain employment levels while keeping restaurant prices manageable and establishing sensible sick leave policies.

The bills now await further deliberation in the Senate.

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