LANSING, Mich. — The Michigan Legislature kicked off its new session today with sharp divisions between Republicans and Democrats over the future of tipped worker wages, the minimum wage, and sick leave laws.
House Republicans introduced a pair of bills aimed at delaying and modifying the impact of a Michigan Supreme Court ruling set to take effect Feb. 21, which would gradually increase the state’s minimum wage to $15 by 2028 and eliminate the sub-minimum wage for tipped workers. The GOP proposal seeks to preserve the current tipped wage system and extend the timeline for the minimum wage hike by an additional year.
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State Rep. Jay DeBoyer (R-Clay Township) said the legislation aims to protect small businesses and their employees from what he described as catastrophic consequences of the court’s mandates. “We’ve heard from countless small business owners and their dedicated employees about what this ruling would mean for them. It would be a catastrophe,” DeBoyer said. “Many small businesses would close, and the ones that remain open would have to significantly raise prices, making it even harder to stay afloat.”
House Republicans cited surveys suggesting that two-thirds of Michigan restaurant operators expect to lay off staff under the new requirements, with 94% saying they would need to raise prices and one in five full-service restaurants projected to close.
Meanwhile, Senate Democrats unveiled their own plan, which proposes an expedited timeline for raising the minimum wage to $15 by 2027, a year earlier than the current schedule. The Democratic proposal also includes adjustments to the tipped wage system, gradually increasing tipped workers’ base pay from 38% of the minimum wage to 60% over the next decade.
Senate Democrats also proposed changes to the state’s sick leave laws. Under their plan, businesses with fewer than 25 employees would be classified as small businesses and required to provide 40 hours of paid sick leave and 32 hours of unpaid leave annually. Larger employers would need to provide 72 hours of paid sick leave.
“Tipped workers and minimum wage earners deserve a fair shot at making ends meet,” Senate Democrats said in a statement. “Our plan strikes a balance between lifting wages and supporting businesses as they transition to these new standards.”
The changes to tipped wages have become the most contentious aspect of the debate. Republicans argue that eliminating the sub-minimum wage will reduce tipped workers’ earnings, force businesses to cut jobs, and drive up costs for consumers. Rep. John Roth (R-Interlochen) said tipped workers in his district already earn close to $30 per hour with tips, far exceeding the minimum wage. “If we force these staff to work at $15 an hour, life in our communities will become impossible to afford,” Roth said.
The Democratic plan also faced criticism for its potential impact on businesses. “Small businesses are already struggling, and these changes will only make it harder for them to survive,” Roth added.
Both parties acknowledged the urgency of resolving the issue before the court-mandated changes take effect next month. To become law, any compromise would require majorities in both legislative chambers and approval from Gov. Gretchen Whitmer.
As the debate unfolds, business owners, workers, and advocacy groups are expected to converge on the state Capitol to make their voices heard in what promises to be a heated legislative session.
