Legislators work to alter wage and sick leave changes

By: Nick Powers | C&G Newspapers | Published January 30, 2025

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METRO DETROIT — Drastic changes to Michigan’s paid sick leave and minimum wage will go into effect Feb. 21. Both of Michigan’s major political parties are currently trying to rein in these efforts in the Legislature.

Republicans hold a majority in the state House of Representatives, and Democrats hold a majority in the state Senate. This month Republicans passed a pair of bills in the House, and Democrats in the Senate have an alternate plan in its early stages.

The whole issue began in 2018, when two petitions for increased wages and paid sick time received enough signatures to get on the ballot. To block this, the petitions were adopted and amended by Republicans in the state Legislature, dramatically changing what would’ve appeared on the ballot.

In the Michigan Court of Claims, it was determined on July 19, 2022, that the adopted and altered acts were unconstitutional. This was reversed by the Michigan Court of Appeals but was ultimately upheld by a 4-3 Michigan Supreme Court ruling July 31, 2024.

The current minimum wage is $10.33, or $3.93 for tipped workers.

 

If nothing happens
If the revisions by Republicans or Democrats are not made, the court’s ruling will go into effect as planned in February.

All workers will receive a pay bump to $12.48 an hour this year, with tipped workers gradually reaching $12 in 2029. The final amounts will be determined by the state’s treasurer.

All employees, including part-time and temporary workers, are entitled to paid sick leave. Every 30 hours an employee works generates one hour of paid sick leave. Employees get 72 hours paid sick time per year at larger companies. However, employers with fewer than 10 employees need to only pay for 40 hours of sick leave a year.

 

Proposed Republican changes
Two Republican-led bills have passed through the Michigan House of Representatives that would augment the court’s ruling.

“These bills are now bound for the Senate where they will face another vote,” Rep. Ron Robinson, R-Utica, said in a press release. “I urge each senator to consider the needs of the small business in their communities and vote yes. It would be a massive win for Michigan if the Senate followed the example of the House and sent these bills to (the) governor’s desk.”

House Bill 4001, introduced by Rep. John Roth, R-Interlochen, would tweak the minimum wage changes. It was passed Jan. 23 with a 63-41 vote. Six House members sat out for the vote.

The bill would set the new minimum wage to $12, which is 48 cents less than what would go into effect automatically Feb. 21. The wage would increase by 50 cents in 2026, and then increase by $1 each Jan. 1 until 2029. Starting in 2030, the state treasurer would calculate the annual increase.

Tipped workers would receive 38% of whatever the minimum wage is for all other workers.

House Bill 4002, introduced by Rep. Jay DeBoyer, R-Clay Township, would alter the paid sick time changes. It passed the same day as HB 4001 with a 67-38 vote. Five members abstained from the vote.

The bill excises the earned sick time for businesses with fewer than 50 employees. Workers at larger companies would earn one hour of sick time for every 30 hours worked, not including hours used as paid leave. Sick leave accrued can carry over from year to year, or an employer can pay the employee the value of the time. Employers do not have to allow more than 72 hours of accrued sick time in a year. They also don’t have to carry over more than 72 hours from one year to the next.

“We have heard again and again from thousands and thousands of restaurant workers whose jobs are at risk,” Sen. Michael Webber, R-Rochester Hills, said in a press release. “The Legislature has both the duty and ability to protect this vital industry and its employees. But the clock is ticking; we need Senate Democrats to do the right thing and join us in the fight to save Michigan’s threatened hospitality industry.”

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The Michigan Restaurant & Lodging Association supported the changes in HB 4001.

“The House has acted to protect 1,000 independent restaurants from closing permanently,” Justin Winslow, president and CEO of the Michigan Restaurant & Lodging Association, said in a press release. “Now it’s critical for the Senate to follow suit and pass House Bill 4001 immediately. Every day of inaction puts more Michigan restaurant jobs and businesses at risk.”​

While some Democrats joined GOP members in approving the votes, some cast a vote against them. Rep. Joe Tate, D-Detroit, said in a release following the vote that the bills could have been better.

“We need to support workers receiving wages and benefits they deserve — along with creating a positive climate for employers to thrive,” Tate said in a press release.

 

Senate Democrats weigh in
Michigan Democratic senators have their own proposed legislation to counter Republican efforts. Sens. Kevin Hertel, D-St. Clair Shores, and Sam Singh, D-East Lansing, have introduced bills that would adjust the changes set to take effect in February. The bills are currently being discussed in their respective committees.

Senate Bill 8, introduced by Hertel, changes the schedule of the wage increases. The initial change in February would remain at $12.48. Each subsequent increase would happen Jan. 1. Next year it would be $13.73, and in 2027 it would rise to $15. After that, the treasurer would update the rate each year.

Unlike the Republican legislation, SB 8 would increase the wages of tipped workers. The first year tipped workers would receive 38% of the $12.48 minimum wage. The wage would rise in 2%-3% increments each Jan. 1 until hitting 60% in 2035.

SB 15, introduced by Singh, deals with paid sick time. This bill attempts to keep some of the court ruling’s original intent, while sanding down some of its edges.

Earned sick time would stay relatively the same as the Supreme Court ruling, though the threshold for a small business would change from fewer than 10 employees to fewer than 25.


Too much meddling?
The passage of the two Republican bills wasn’t met with enthusiasm everywhere.

“Today, in a bipartisan fashion, the Michigan House of Representatives caved to corporate lobbyists and betrayed Michigan workers by voting to gut the state’s minimum wage and paid sick leave laws,” Sam Inglot, the executive director of Progress Michigan, said in a press release.

He said that the majority of Michigan residents supported the original changes as laid out by the Michigan Supreme Court’s decision. He urged the Senate to not make the two pieces of legislation into law.

“HB 4001 and HB 4002 strips workers of a well-deserved and overdue raise and strips too many workers of paid sick leave they need to take care of themselves and their loved ones,” Inglot said.

Michigan AFL-CIO President Ron Bieber accused the GOP of “unconstitutional tricks” when adopting and amending the original petition. Bieber advocated for keeping the court’s decision in place.

“Now, less than a month before workers are about to finally get the pay and benefits they deserve, the new Republican majority is trying to pull the rug out from under working families,” he said in a press release. “Every legislator, regardless of their party, should be held accountable for their vote to cut the pay and benefits for workers most in need.”