DURING THE MICHIGAN HOUSE session Thursday, state Rep. Bill G. Schuette, R-Midland, shares his support for legislation to eliminate some changes to the state’s minimum wage and paid sick leave law set to take effect in February. (Kyle Davidson/Michigan Advance)

With less than a month remaining until new minimum wage and paid sick leave laws are set to take effect, the GOP-led Michigan House continued to fast track two bills that would roll back some of the changes.

“The restaurant industry is already experiencing closures, dramatic fee increases and lost jobs as operators begin to adapt to a Michigan Supreme Court ruling that takes effect in 29 days. We are asking the Senate to recognize the considerable smoke that surrounds this industry and to take quick action to prevent this avoidable fire. The clock is ticking, and Michigan’s restaurant owners and servers can’t afford to wait,” said Justin Winslow, president and CEO of the Michigan Restaurant and Lodging Association, a big proponent of the minimum wage legislation.

Members voted 63-41 in favor of House Bill 4001 and 67-38 in favor of 4002, with each bill earning support from some Democrats after clearing the House Select Committee on Protecting Michigan Employees and Small Businesses last week with near-unanimous support from its members.

Nearly all Republicans supported House Bill 4001, save for Rep. Brad Paquette of Niles. , The six Democrats who voted in support were Reps. Carol Glanville of Walker, Peter Herzberg of Westland, Tullio Liberati of Allen Park, Will Snyder of Muskegon, Karen Whitsett of Detroit and Angela Witwer of Delta Township.

House Bill 4002 received full support from Republicans, with Democrats Reps. Noah Arbit of West Bloomfield, Tyrone Carter of Detroit and Amos O’Neal of Saginaw joining Glanville, Herzberg, Liberati, Snyder, Whitsett and Witwer in favor of the bill.

In July, the Michigan Supreme Court struck down the so-called “adopt and amend” strategy the GOP-controlled Legislature used in 2018 to gut two ballot initiatives, one increasing the minimum wage and phasing out the sub-minimum rate for tipped employees and the other expanding paid sick leave requirements for employers. As part of its opinion, the court restored the provisions eliminated by lawmakers.

These changes are set to take effect on Feb. 21. If the Legislature does not take action before then, the minimum wage will increase to $12.48, rising up to $14.97 by 2028 while the subminimum tipped wage would be phased out by 2030.

Additionally, employers with fewer than 10 employees would be required to offer up to 40 hours of paid sick leave and 32 hours of unpaid leave, while businesses with 10 or more employees must offer a full 72 hours of paid sick leave.

Small business owners, members of the restaurant and hospitality industry, and multiple business groups have pushed back against the changes, warning these new requirements would carry significant costs for employers, potentially resulting in layoffs and closures, making it a top priority for Republicans in both chambers of the Legislature.

A 2024 survey from the Michigan Restaurant and Lodging Association estimates the changes, if implemented, would lead to the loss of an estimated 40,000 to 60,000 restaurant jobs.

However, the policy’s proponents have argued the changes will benefit workers struggling with the rising cost of living, with the nonpartisan Michigan League for Public Policy noting livable wages benefit local economies as people are more likely to spend their money at small businesses, promoting growth.

House Bill 4001 — sponsored by Rep. John Roth, R-Interlochen — would keep the tipped wage at 38% of the state minimum wage, abandoning the phase out. It also reduces the proposed increases to the minimum wage, with the minimum wage set to increase to $15 at the start of 2029 compared with the schedule laid out in the incoming changes, which would raise the minimum wage to $14.97 by Feb. 21, 2028. It also reduces the wage rate for employees younger than 18 from 85% to 75% of the minimum wage.

House Bill 4002 — sponsored by Rep. Jay DeBoyer, R-Clay — exempts employers with 50 employees or fewer from the new paid sick leave requirements, and eliminates language permitting employees to take civil action if their employer violates the law.

While Democrats issued a flurry of amendments in an effort to salvage the minimum wage increases and sick leave provisions put in place by the Supreme Court opinion, none were adopted.

Many Democrats continued the push against the bills, calling on their colleagues to vote no while raising concerns that the bills could harm workers and their families, enabling wage theft, discrimination and poverty.

“Legislative Republicans are once again attempting to subvert the will of the people, as well as the Michigan Supreme Court. House Bill 4001 is a clear and direct effort to prevent a minimum wage increase that the Michigan voters fought for, a move that defies both the Constitution and the principle of democracy itself,” state Rep. Helena Scott, D-Detroit, said in opposition to the bills.

“The narrative being pushed that raising the minimum wage for tipped workers will harm the industry is simply untrue. In states where tipped-minimum subminimum wages have been eliminated, workers still earn tips, businesses continue to thrive and workers take home more money,” Scott said.

However, Republicans prevailed, pointing to the stories they had heard from servers and small business owners in support of the bills.

“You all didn’t have to listen to all four hours of the Select Committee’s testimony hearings last week. … You just need to drive past your local mom-and-pop store or visit with servers in your districts to know that these bills are about protecting Michigan employees and small businesses,” said Rep. Bill G. Schuette, R-Midland, who chaired the House select committee.

But Michigan AFL-CIO President Ron Bieber slammed the decision, arguing the bills would cut pay for more than 500,000 workers by up to $2,400 a year and end guaranteed paid sick leave for nearly 1.5 million people.

“Six years ago, a Republican majority engaged in underhanded, unconstitutional tricks to deny a pay raise and paid sick leave for hardworking Michiganders. 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,” Bieber said in a statement.

“Every legislator, regardless of their party, should be held accountable for their vote to cut the pay and benefits for workers most in need. The legislature should respect the Supreme Court ruling and allow the minimum wage to increase and guarantee all workers have the ability to take care of themselves and their families when they are sick,” Bieber said.

The bills will move to the Senate for further consideration, where Senate Democrats have offered their own bills tweaking the minimum wage and sick leave changes.

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