Michigan Senate passes bill amending minimum wage increase
(CBS DETROIT) - The Michigan Senate on Thursday approved a bill that amends the timeline of the minimum wage increase ahead of the new law going into effect next week.
Under Senate Bill 8, the wage increase effective on Feb. 21 would be $12.48, reaching $15 by 2027. The amended bill also reduces the minimum wage increase for tipped workers to 38% beginning Feb. 21, gradually increasing to 60% by 2035. The current bill required a 48% increase for tipped workers until it reached 100% by 2030.
The bill, sponsored by Sen. Kevin Hertel, D-St. Clair Shores received a 20-12 vote and will go to the House for consideration.
"When I sat down with workers and small business owners to discuss the importance of Michigan's tipped wage system, our political differences didn't matter — what mattered was finding a solution that allows small businesses to thrive and keep their doors open," Hertel said in a statement. "Crafted with those perspectives in mind, this legislation protects and improves Michigan's tipped wage, so workers earn a good living while small businesses have the stability they need to continue serving our communities. I'm grateful for my colleagues on the other side of the aisle for doing what we were sent here to do: put politics aside, find room for compromise, and deliver a solution to help move Michigan forward."
Prior to the vote, House Speaker Matt Hall called on Senate Democrats to pass the bill to slow down the wage increases and preserve the tipped wage. Hall warned that not passing the bill would be bad for business.
"[Workers are] going to see their jobs go away; they're going to lose their jobs because the businesses that they work for and their employers are going to close," he said ahead of the Senate's vote.
Lawmakers will now have to focus their attention on the earned sick leave. If no action is taken before Feb. 21, the Earned Sick Time Act would increase mandatory paid leave from 40 hours to 72 hours. Employers will less than 50 workers would no longer be exempt from having to offer paid sick time.
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