NEWS RELEASE
GOVERNOR GRETCHEN WHITMER
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LANSING — Governor Gretchen Whitmer on Friday signed two bipartisan bills that will protect Michigan families against rising costs and inflation by increasing the state’s minimum wage and expanding paid sick leave policies.
The bills bolster the Whitmer-Gilchrist administration’s commitment to supporting working families and small businesses by forging a commonsense solution that keeps Michigan competitive to earn a paycheck and build your business. Including today’s legislation, Governor Whitmer has signed a record 1,502 bipartisan bills into law since taking office.
"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.
“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 bills implement a solution to a problem created in 2018 when the Republican-controlled legislature decided to circumvent voters and take an unconstitutional action that has since been invalidated by the Michigan Supreme Court.
Thanks to the partnership of Democrats and Republicans, led by House Speaker Matt Hall and Senate Majority Leader Winnie Brinks, these bills will support Michigan’s workers without hurting small business owners.
"With Governor Whitmer’s signature today, thousands of community restaurants and tens of thousands of servers and bartenders can exhale, knowing their voice was heard,” said Justin Winslow, President & CEO of the Michigan Restaurant & Lodging Association.
“They can now begin the work of planning for their collective future with the knowledge that a tip credit has once again been preserved. We're especially grateful to all those who took the time to truly understand what was at stake - the servers who showed up in Lansing to share their stories, the legislators who visited countless restaurants to learn firsthand how the tip credit works and the many small business owners who opened their books to show the real numbers.”
Senate Bill 8, sponsored by state Senator Kevin Hertel (D-St. Clair Shores), will put more money in the pockets of working families by increasing Michigan’s minimum wage, with 731,000 workers overall getting a pay raise.
After taking effect, Michigan workers will see historic increases in their paycheck. And after the initial pay raise, the bill also incrementally increases the minimum wage, reaching $15 an hour by Jan. 1, 2027 and putting potentially $9,700 more in the pockets of 200,000 Michigan workers.
This process gives employers and small business owners more flexibility as they adjust to these changes. After 2027, the minimum wage will increase each year according to inflation. The bill will also support restaurant workers and other tipped employees by incrementally increasing the tipped wage credit to match neighboring states, bringing Michigan up to the regional average. Ensuring these changes happen over time will give small businesses increased flexibility to pay their employees fair wages without impacting their ability to thrive in Michigan. This bill will support Michigan families as they work to put food on the table and pay the bills. Specifically, the bill will protect working Michiganders against rising prices caused by inflation.
“When the livelihoods of workers and business owners in our service industry were threatened with uncertainty, they didn’t care about politics – they just wanted their elected leaders to come together and find a solution to protect the tipped wage,” said state Senator Kevin Hertel (D-St. Clair Shores).
“I’m thankful for my colleagues on both sides of the aisle who stepped up, put politics aside, and worked in good faith to reach a compromise. While there is no perfect solution that would satisfy all parties involved, we were able to deliver a fair, bipartisan agreement that not only protects but improves the tipped wage to ensure workers get a meaningful raise, while employers are able to continue running their businesses.”
House Bill 4002, sponsored by state Representative Jay DeBoyer (R-Clay), will protect Michigan’s workers by expanding paid sick leave policies in the workplace. Specifically, the bill increases flexibility for working families by allowing employees to use paid leave to bring your child to a doctor’s appointment, stay home to protect your coworkers from illness, and more.
Additionally, the bill would ensure that employers cannot require employees find their own replacement when using earned sick time. The bill also supports small business owners by improving the ability for small businesses to provide their workers earned sick time.
"Michigan workers and small businesses have been bracing for confusing, costly new mandates today,” said state Representative Jay DeBoyer (R-Clay).
“Although this legislation doesn't solve every problem, it moves things back in the right direction. House Republicans have been advocating for the people of Michigan, and compared to what was coming, this legislation helps Michigan workers keep good jobs, income, and benefits, and it improves conditions for small businesses. I appreciate the governor signing this plan into law, and I look forward to continuing to support working families and local job providers."
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