(WXYZ) — The Michigan State House passed a compromise bill in an 11th-hour vote in Lansing, just before Michigan's new minimum wage and paid sick leave laws were set to take effect.
Hours later, Governor Gretchen Whitmer's office announced she had signed the compromise bills into law.
"Michigan workers deserve fair wages and benefits so they can pay the bills and take care of their family, and small businesses needs our support to keep creating good jobs in Michigan,” said Governor Whitmer in a news release. “I’m proud to sign these two bipartisan bills into law that will raise wages, ensure workers can take time off to care for themselves or their loved ones, and continue growing our economy. This commonsense compromise was made possible by the Republicans and Democrats who worked together to forge a fair, bipartisan deal. I hope we can build on this momentum to keep passing commonsense, bipartisan legislation that makes a real difference in people’s lives. I’ll keep working with anyone to protect working families and make sure our economy is competitive.”
The bill amended the requirement for most employers to provide paid sick leave, but the law still went into effect when the clock struck midnight because it still needed the governor's approval. The new laws override the ones that went into effect at midnight.
There has been a growing concern for small business owners and tipped-wage workers for months, leaving a lot up in the air for tipped workers.
Under the laws that went into effect at midnight, minimum wage workers saw a nearly $2 per hour pay increase in line with existing legislation to increase that pay to $15 per hour by 2028. Now that the governor has signed the bill, that date has been bumped.
Lawmakers say they also listened to those tipped workers while making some changes.
Lawmakers passed HB 4002 late Thursday, less than an hour before the midnight deadline.
The bill makes some changes to the current earned sick time and minimum wage laws, with earned sick time. The bill allows businesses with 10 or fewer employees to provide 40 hours instead of 72 hours of earned sick time. It also gives small businesses a grace period to implement the benefit.
"By having a compromise with Democrats and Republicans, we’re able to keep many many more restaurants," Sen. Joe Bellino, a Republican from Monroe, said.
The bill also changes the minimum wage pay increase timeline.
Under the measure that went into effect at midnight, minimum wage workers would have seen $12.48 an hour, with the second pay hike working towards the $15 per hour by 2030 goal. Tipped workers are on track to make full minimum wage by 2030.
Lawmakers reached across the aisle and worked down to the wire to change that.
"The giving part of that is the $15/hr minimum wage is going to go up a year earlier," Bellino said.
By 2027, the other change to pay is they want to keep the tipped credit capped at 50% by 2031, meaning they will still make a slightly higher server's wage than now, at $7.50 per hour by 2031, an effort to calm tipped workers' concerns about customers not tipping.
"I could bring home $100 or more now doing this. So when they feel like, 'OK, the pay is going up,' We don’t leave that much," Leeza Proveaux said.
Proveaux said she prides herself on giving customers a good restaurant experience.
"Your boss should be paying you more. And I don't agree with that. I don’t. Like I’m giving you good service, you should be leaving me a nice tip," Proveaux added.
