Governor Gretchen Whitmer has signed a compromise that scales back paid sick leave requirements and a minimum wage hike in an effort to appease businesses.
Although Friday’s minimum wage increase was already scheduled to take effect, enough Democrats agreed with Republicans in the Michigan House to speed up subsequent hikes. The concessions were made in response to warnings by businesses — especially those with tipped workers — that the changes would force closures.
State Senator Aric Nesbitt tells us the late night deal reached in the House will save thousands of restaurants that otherwise would have had to start paying much higher wages to tipped workers.
“We got a consensus on trying to rough out the hardest edges that would have driven a stake through tens of thousands of employees and thousands of businesses here in the state and at least make some of these provisions a bit more workable even though they’re going to be burdensome,” Nesbitt said.
The minimum wage legislation would raise the state minimum wage to $15 by 2027 and increase the tipped minimum wage from 38% to 50% by 2031, rather than phasing it out. Under the paid sick time legislation, businesses will be required to provide employees with one hour of paid sick time for every 30 hours worked. Businesses with ten or fewer employees would have the option to provide their employees with 40 hours of paid sick time at the beginning of the year instead. That takes effect in October.
Nesbitt says while these compromises are welcome, he thinks the issue will come up again.
“I’m glad that a deal has been made. However, I do think that more changes are needed to make it less burdensome on business and on the employees and workers in the state.”
Michigan’s minimum wage on Friday immediately went up to $12.48 for adults.
The state Supreme Court ordered major changes to the state’s minimum wage after a ruling last year found a previous legislature acted illegally to undo voter-approved minimum wage changes.
The Associated Press contributed to this report.