Governor approves bills for sick time, minimum wage

METRO DETROIT — Gov. Gretchen Whitmer signed two bills into law that headed off automatic changes to the state’s paid sick time and minimum wage on Feb. 21.

“Michigan workers deserve fair wages and benefits so they can pay the bills and take care of their family, and small businesses (need) our support to keep creating good jobs in Michigan,” Whitmer said in a press release. “I’m proud to sign these two bipartisan bills into law that will raise wages, ensure workers can take time off to care for themselves or their loved ones, and continue growing our economy. This commonsense compromise was made possible by the Republicans and Democrats who worked together to forge a fair, bipartisan deal. I hope we can build on this momentum to keep passing commonsense, bipartisan legislation that makes a real difference in people’s lives. I’ll keep working with anyone to protect working families and make sure our economy is competitive.”

Whitmer’s action closes the door on an issue that dates back to 2018. Two petitions for increased wages and paid sick time received the necessary number of signatures to appear on the ballot in Michigan. Republican legislators, in a move to keep them off the ballot, adopted the two petitions. Once adopted, the measures were significantly altered.

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 Supreme Court outlined changes that would have been true to the petitioners’ original intent. This included changes to paid sick time and the state’s minimum wage for tipped and nontipped workers.

Legislators in the Michigan House of Representatives and Senate scrambled to pass legislation that would alter the changes set to take effect Feb. 21. House Bill 4002, introduced by Rep. Jay DeBoyer, R-Clay Township, and Senate Bill 8, introduced by Sen. Kevin Hertel, D-St. Clair Shores, were the bills ultimately signed by the governor.

 

What the adopted bills do
SB 8, which became Public Act 1 of 2025, raised the minimum wage to $12.48 from $10.56, which mirrors the automatic changes due to take effect after the Supreme Court’s ruling. Each year on Jan. 1, the wage will rise until it hits $15 in 2027. After 2027, the state’s treasurer will determine the wage.

PA 1 gives tipped workers 38% of the $12.48 minimum wage. This will raise the wage from $4.01 to $4.74. The wage will rise in 2% increments each Jan. 1 until hitting 50% in 2031.

HB 4002, which became Public Act 2 of 2025, deals with paid sick time. Employees at small businesses, those with 10 or fewer employees, earn one hour of sick time for every 30 hours worked. This is capped at 40 hours a year. For larger businesses, employees also earn one hour of paid sick time for every 30 hours worked with a cap at 72 hours.

Those working for small businesses can carry over up to 40 hours of unused sick time. At larger companies, employees can carry over up to 72 hours of unused sick time.

The changes for small businesses go into effect Oct. 1. For larger companies, the changes took effect Feb. 21. For both large and small businesses, employees hired after the acts go into effect can start accruing time immediately. However, an employer can require an employee to wait 120 days before taking any time.

Reasons to take paid sick time in Michigan for employees or an employee’s family member include mental or physical illness; injury or medical treatment; and domestic or sexual violence. For employees, meetings regarding a child’s health or abuse, and closure of a business due to a public health emergency, also qualify.

 

Reactions
Justin Winslow, president and CEO of the Michigan Restaurant & Lodging Association, praised the legislation.

“With Governor Whitmer’s signature today, thousands of community restaurants and tens of thousands of servers and bartenders can exhale, knowing their voice was heard,” Winslow said in the same press release that included the governor’s comments. “They can now begin the work of planning for their collective future with the knowledge that a tip credit has once again been preserved. We’re especially grateful to all those who took the time to truly understand what was at stake — the servers who showed up in Lansing to share their stories, the legislators who visited countless restaurants to learn firsthand how the tip credit works and the many small business owners who opened their books to show the real numbers.”

Not everyone was thrilled with the outcome. Progress Michigan Executive Director Sam Inglot criticised legislators for deviating from the original intent of the petitions.

“It is disappointing that the Michigan Legislature caved to a spin campaign pushed by corporate lobbyists and voted to roll back a well-deserved raise and paid sick leave for working families in Michigan,” Inglot said in a press release. “Hundreds of thousands of Michiganders took action to sign petitions and demand that we give workers a raise, eliminate the subminimum tipped wage, and implement paid sick leave in 2018. Advocates fought back against the Republican adopt-and-amend scheme and won, only to face the same betrayal in 2025 — this time in a bipartisan fashion.”