LANSING, Mich. (WZMQ) – Governor Whitmer has signed new tipped wage and earned sick time acts into law. Lawmakers worked late Thursday night, coming to a final agreement on the bills, and passing them just in time to avoid an old 2018 law from taking effect.
The final tipped wage law sets the minimum wage at $12.48, and tipped wages at 38% of that. The minimum wage will see hikes to $13.73 in 2026, and then $15 in 2027.
The tipped wage percentage is also set to increase by 2% each year until it hits 50% of the minimum wage in 2031.
The Earned Sick Time Act now requires employers to provide full-time workers with 72 hours of paid sick time upfront. Businesses with 10 or fewer employees will be required 40 hours of paid sick time per employee, and businesses established after February 1, 2025, will have a 3-year grace period to meet the standard.
Representative Bill G.Schuette is the chair of the House select committee that first heard testimony on the legislation.
“You know, that’s negotiation, everybody has to talk and I think the landing spot we gave gives a little bit of a runway for those small businesses and provides greater flexibility. This is the first trial balloon of a divided government.” Schuette said. “I think the mark of a good compromise is at the end of the day bringing both sides together for policy solutions that improve the bottom line for the small businesses and the workers in the state of Michigan, I think that’s what we got.”
The law was signed by the governor Friday morning and will take effect retroactively. This means employers won’t be responsible for adhering to the 2018 law for the 13 hours it was in place.
