Updates About Legislation

Governor Whitmer has signed two bipartisan bills aimed at supporting Michigan’s workforce by expanding paid sick leave and increasing our state’s minimum wage. Senate Bill 8 gradually raises the minimum wage to $15 an hour by 2027, giving small businesses time to adjust to the pay increase for over 730,000 Michigan employees. Following 2027, the minimum wage will continue to rise based on inflation. It also increases the tipped wage credit over time to align more closely with wages in our neighboring states.

The second bipartisan bill—House Bill 4002— expands paid sick leave policies, allowing employees to use earned time off for medical appointments, illness, or caregiving without being required to find their own replacement. Both bills were crafted through bipartisan collaboration to balance worker protections with business sustainability, reinforcing Michigan’s commitment to a strong and competitive workforce.

Related Article: SENATE PASSES TIPPED MINIMUM WAGE BILL WITH CAUCUS RESISTANCE

The Michigan Senate has passed a bipartisan bill, SB 8, that will gradually raise the tipped minimum wage to 50% of the regular minimum wage by 2031, rather than completely phasing it out as originally planned. The bill, introduced by Democratic Senator Kevin Hertel (D-Saint Clair Shores), received more support from Republicans than Democrats, with a 20-12 vote in favor. Under the bill, the tipped wage will remain at 38% for the rest of 2025, then increase by 2% annually until it reaches 50%. This compromise comes as the Legislature faces a February 21 deadline to amend the minimum wage and Earned Sick Time Act (ESTA) before they take effect.

SB 8 is tie-barred to HB 4002, the ESTA bill, which remains in a Senate committee. As a result, the minimum wage changes cannot be signed into law without also changing the paid sick time bill. While many businesses and Republicans view the bill as a necessary adjustment to avoid job losses in the restaurant industry, some Democrats and labor advocates criticize it for rolling back worker protections originally mandated by a court order.

Despite the mixed response, legislative leaders view the bill as a step toward a bipartisan solution. Senate Majority Leader Winnie Brinks (D-Grand Rapids) and Hertel expressed optimism about continued negotiations, while Republican leaders emphasized the need to balance business interests with wage increases. House Speaker Matt Hall (R-Richland Township) highlighted the importance of compromise, stating that the deal should benefit workers rather than just businesses or labor unions. With the deadline approaching, both parties acknowledge more work is needed to finalize a consensus on the state’s wage and sick leave laws.

Senate Democrats have filed a lawsuit in the Court of Claims against House Speaker Matt Hall (R-Richland Township), alleging that he is unconstitutionally withholding nine bills passed in the 2023-2024 session from being presented to Governor Whitmer for signature.

Senate Majority Leader Winnie Brinks (D-Grand Rapids) announced the lawsuit, emphasizing that legislative leadership cannot override constitutional requirements. The bills in question cover various issues, including increasing public employer contributions to employee health insurance, allowing Detroit history museums to seek a property tax millage, adjusting corrections officers’ pensions, and protecting certain public benefits from debt garnishment.

Hall’s office has cited legal and technical concerns as the reason for the delay, but Democrats argue that the governor has the sole authority to review legislation once passed.