LANSING, Mich. — The Michigan State Senate passed a significant piece of legislation Thursday night aimed at improving the wages of tipped workers in the food and service industries. Senate Bill 08, which passed with a 20-12 vote, will gradually raise the tipped wage over the next several years, beginning in 2025 and reaching its peak in 2031.
Under the new law, tipped workers will begin earning 38% of the state’s minimum wage starting on February 21, 2025. This percentage will increase by 2% annually until it reaches 50% of the minimum wage by 2031. The legislation also includes provisions for the state’s overall minimum wage, which will rise to $12.48 per hour by 2025 and reach $15 per hour by 2027.
The bill was passed amid heightened tensions, as Speaker of the House Matt Hall accused Senate Democrats of stalling the vote earlier in the day. However, Hall later expressed support for the measure, calling it a “good first step” for Michigan’s tipped workers and the state’s small businesses. In a statement following the vote, Hall said, “This agreement would keep thousands of people on the job, help them make more money to support their families, and keep many of our beloved local businesses open for generations to come.”
The legislation follows years of advocacy from tipped workers, who have been vocal in their push for fairer wages. Senate Majority Leader Winnie Brinks, who supported the bill, praised the efforts of workers who advocated for change. “This bipartisan legislation is a result of the overwhelming advocacy from tipped workers who have spoken loudly and been in and out of the Capitol asking for our help,” Brinks said. “We were able to honor their voices while accelerating the minimum wage even faster than the original proposal.”
The bill is seen as a major step forward for workers who have long been subject to lower wages due to the reliance on tips for compensation. As the legislation moves to the House for further approval, it remains to be seen how the bill will impact Michigan’s food and service industries, both in terms of worker satisfaction and business sustainability.
If enacted, the law would offer a substantial wage boost for thousands of Michigan workers, providing them with more financial stability while also addressing long-standing concerns over the fairness of the current tipped wage system.
