LANSING, MI — Many in the service industry and beyond are keeping an eye on the status of two pieces of Michigan legislation that could affect upcoming changes to the state’s minimum wage, tipped minimum wage, and paid sick leave laws.
Following a Michigan Supreme Court decision in July 2024 that reinstated the Improved Workforce Opportunity Wage Act of 2018, Michigan’s minimum wage, tipped minimum wage, and paid sick leave will change on Friday.
The Improved Opportunity Wage Act of 2018 will take effect on February 21, 2025, and will begin the gradual increase of Michigan’s minimum wage, as well as the elimination of the “tipped wage credit” and the expansion of paid sick leave.
The changes will raise Michigan’s minimum wage to $14.97 on February 21, 2028, and the tipped employee minimum wage to 100% of the state minimum wage on February 21, 2030.
It has been nearly seven months since the ruling, and following opposition from restaurant owners and workers to the changes to tipped wages, both Democrats and Republicans have attempted to pass legislation to reverse the changes.
The legislature’s most recent attempts to alter the changes take the form of two pieces of legislation: Senate Bill 8 and House Bill 4002.
Senate Bill 8 focuses on upcoming changes to the minimum wage and the so-called “tipped wage credit.” The legislation caps the tipped worker minimum wage at 50% of the state minimum wage by January 1, 2031, and modifies Michigan’s minimum wage changes to become
- Feb. 21, 2025 – Minimum wage increases to $12.48
- Jan. 1, 2026 – Minimum wage increases to $13.73
- Jan. 1, 2027 – Minimum wage increases to $15.00
House Bill 4002 focuses on upcoming changes to paid sick leave, specifically narrowing some eligibility requirements while expanding others granted under the Improved Opportunity Wage Act of 2018.
One of the major changes made by this legislation to the upcoming paid sick leave changes is that the paid leave expansion is limited to companies with 50 or more employees, as opposed to the original act’s designation of companies with 1 or more employees.
Both pieces of legislation have passed through the chambers where they were introduced and are now awaiting committee hearings. Both pieces of legislation received bipartisan support, but Senate Bill 8 received only 20 votes in favor, 12 in opposition, and five excused.
Senate Bill 8 includes a provision that requires House Bill 4002 to become law before it can be enacted.
Both parties appear to want a “fix” to the upcoming changes in the state’s minimum wage and paid sick leave laws, but agreement on how is still elusive.
Michigan Republicans went so far as to boycott the House’s final legislative sessions, demanding that Democrats sit down and negotiate a plan for moving forward.
Both pieces of legislation are currently awaiting committee hearings, making it difficult to predict when or if they will be voted on again.
While there is no deadline for making changes to the Improved Opportunity Wage Act of 2018, ongoing changes may cause headaches for both employers and employees as they navigate wage and sick leave changes.
