DETROIT, Mich. (DDN) – The Michigan House voted on legislation to retain the minimum wage law, which was slated to go into effect on February 21.
Senate Bill 8, which seeks to block a court-ordered phase-out of the lower minimum wage for tipped workers, was passed by the Senate last week.
The measure proposes that the tipped minimum pay continue at 38% of the standard minimum wage this year. It would increase annually, peaking at 50% in 2031.
The plan would nonetheless raise Friday’s standard minimum wage to $12.48 per hour. However, it would reach $15 per hour in 2027 rather than 2028.
Tipped workers must be paid 48% of the minimum hourly wage beginning Friday, with a 100% increase in 2030.
“A total of 2,194,015 Michiganders voted for the 69 legislators in the Michigan House of Representatives that today voted for the bipartisan compromise legislation to preserve a tip credit in Michigan. That is what representative democracy from actual Michiganders looks like. That is what prioritizing real-world impacts over scare tactics and virtue signaling from out-of-state interest groups looks like. That is what leadership looks like. We thank Speaker Matt Hall for his continued commitment to restaurant workers and community restaurants and remain hopeful that a deal comes together on Thursday regarding paid leave mandates that will prevent an impending catastrophe,” Justin Winslow, President & CEO of the Michigan Restaurant & Lodging Association.
Senate Bill 8 has been met with mixed reactions. The restaurant sector has expressed support, but labor groups have expressed dissatisfaction, regarding it as a betrayal of workers.
The law will be sent to Michigan Governor Gretchen Whitmer’s desk following a procedural move in the Senate.
The legislation is linked to House Bill 4002, which concerns paid sick leave.
Senate and House leaders are now negotiating paid sick leave policies.
Senate Bill 8 would not be effective unless both laws were signed into law.
Reference: Michigan House passes bill to preserve lower minimum wage for tipped workers
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