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Major changes to Michigan’s minimum wage, tip credit, and the Earned Sick Time Act (ESTA) are set to take effect on February 21, 2025, posing significant challenges for businesses. Recent legislative developments offer hope for commonsense fixes, but businesses must stay prepared for compliance as it stands today.
What’s happening:
New bills introduced:
- House Bills 4001 and 4002 reflect the fixes we’ve been advocating for.
- Senate Bills 8 and 15 signal progress but differ in approach.
Progress in the House of Representatives:
- A special Select Committee on Protecting Michigan Employees and Small Businesses recently held hearings, where the GR Chamber and members shared testimony about the impact of ESTA and minimum wage mandates.
- Votes: Both bills passed out of committee with bipartisan support.
What’s next:
- House: Expect both bills to reach the House floor for a vote soon.
- Senate: Action is less certain, but momentum is building. Outreach to Senators is critical to emphasize the urgency of addressing ESTA and minimum wage fixes.
- It’s unclear if the House and Senate will ultimately agree on language to send to the governor.
Contact Legislators:
Tell them how these changes impact your business and urge support for swift passage.
- Find Your State Rep | Find Your State Senator
- Speaker Matt Hall: MattHall@house.mi.gov
- Senator Winnie Brinks: SenWBrinks@senate.michigan.gov
- Governor’s Office: 517-335-7858.
Your voice is critical to ensure a balanced outcome. Together, we can amplify our message and push for legislative action.
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The Context
The Michigan Supreme Court’s landmark decision to raise the minimum wage, eliminate the tip credit and expand paid leave has significantly reshaped the state’s labor laws. Employers across Michigan must now navigate these changes by reviewing and adjusting their policies and procedures to remain compliant.
As businesses prepare for increased labor costs and one of the most comprehensive paid sick leave laws in the nation, we are working closely with legislators to lessen the impact and support a smoother transition for all affected industries. It is crucial for members of the Michigan House and Senate to unite in passing practical, common-sense legislation that balances worker support with the financial health of businesses. This balance is essential for sustainable economic growth and continued employment opportunities.
Use the links below to better your understanding of the new laws and prepare your business and employees for a successful transition.