LANSING, MI — In a late-night vote just ahead of a midnight deadline, Michigan lawmakers passed significant reforms to the state’s paid sick leave and minimum wage laws. The bills, which were introduced to address concerns from both workers and businesses, were passed with amendments that block a controversial 2018 ballot measure set to take effect on February 21.
The legislation, known as House Bill 4002, was approved in the Senate just after 10:40 p.m. on Thursday, February 20, with the House quickly sending the bills to Governor Gretchen Whitmer’s desk for final approval. The reform package included a tie-barred measure, Senate Bill 8, which preserves the tipped wage system for restaurant workers and bartenders. It also raises Michigan’s minimum wage to $15 an hour by 2027, with tipped wages reaching half the standard rate.
The bills were a direct response to a 2018 ballot initiative that would have mandated paid sick leave for businesses with 10 or more employees, offering up to 72 hours of paid sick time annually. Smaller businesses would have been required to provide up to 40 hours. The new legislation blocks these provisions while offering a more flexible approach to paid leave and wage increases, which some lawmakers view as a necessary compromise.
Lawmakers Speak Out on Reform
Michigan lawmakers were quick to voice their opinions after the vote, with both praise and criticism of the final package.
State Sen. Sam Singh (D-East Lansing) described the legislation as a step forward in improving earned sick leave access for Michigan workers. “Michiganders should be able to care for themselves and their loved ones when they are sick without fear of jeopardizing their wages or losing their jobs,” Singh said. “This legislation was thoughtfully crafted from extensive discussions held with workers and businesses alike and significantly improves earned sick leave access and Michigan’s national standing in providing it.”
Senate Majority Leader Winnie Brinks (D-Grand Rapids) echoed Singh’s sentiment, emphasizing that the bill addresses the unpredictable nature of emergencies and illness. “This bill is informed by the people of Michigan and negotiated in good faith across bipartisan lines,” Brinks said, noting that the reforms would serve as a model for other states in the future.
On the other hand, some lawmakers, particularly Republicans, criticized the rushed process and the compromises made to secure the legislation. State Rep. Ron Robinson (R-Utica) argued that the plan was far from perfect, but was the best possible outcome given the circumstances. “The other side didn’t want to compromise on anything, and they were willing to let countless Michiganders lose their jobs,” Robinson stated. “Owning a small business is hard enough without government red tape. This negotiated plan is a necessary stopgap.”
State Sen. Roger Hauck (R-Mt. Pleasant) also voiced concerns over the timing of the bill’s passage, calling it an “imperfect solution” but better than the alternative. “We had two options: let bad policies take effect and watch small businesses get carried to hell in a handbasket, or step in with a plan that gives them a fighting chance,” Hauck said.
A Compromise for Small Businesses and Workers
One of the main points of contention in the debate was the preservation of the tipped wage for restaurant workers. The new law allows tipped workers to continue earning wages through tips without having to worry about losing their income due to the changes. This provision was particularly important for restaurant workers and bar staff, many of whom rely on tips for a significant portion of their income.
Wendy Block, senior vice president of business advocacy for the Michigan Chamber of Commerce, praised the compromise. “This plan is a common-sense win for Michigan’s small businesses, restaurant workers, and economy,” Block said. “Servers and bartenders made it clear they want to keep the tip credit, and we heard them loud and clear. This legislation ensures they can continue earning strong wages while also giving small businesses the stability they need to thrive.”
Criticism Over Worker Protections
Despite the positive reactions from many business representatives, some lawmakers and worker advocates expressed frustration with the bill’s shortcomings in protecting employees. State Rep. Kathy Schmaltz (R-Jackson) was critical of the bill’s failure to provide workers with sufficient protections, particularly the loss of the ability to sue employers for violations. “This policy falls short of giving folks a fair sick time policy and solid worker protections,” Schmaltz said. “The fight is not over.”
State Rep. Tonya Myers Phillips (D-Detroit) voiced similar concerns, emphasizing that while the reforms were necessary to avoid economic chaos, they still failed to address key worker needs. “These compromises aren’t perfect, but heading off the absolute chaos that would have been caused had the Court’s ruling gone into effect is a big win for workers, businesses, and our economy,” Phillips stated.
The Path Forward
As the bills now await Governor Whitmer’s signature, the debate over paid sick leave and minimum wage in Michigan is far from over. While many lawmakers have expressed satisfaction with the compromise, others are already looking ahead to future reforms. State Rep. Bill G. Schuette (R-Midland) suggested that the recent changes were only a “small step” toward ensuring fair wages and worker protections in the state, signaling that further action will be necessary.
In the meantime, Michigan workers and businesses will likely continue to feel the effects of the new policies, which will gradually increase wages and offer more flexibility in earned sick leave. The passing of these reforms marks a significant moment in the state’s ongoing debate over labor laws, with both sides acknowledging the need for balance between the needs of workers and the realities faced by small business owners.
