LANSING, Mich. (WZMQ) – The Michigan House of Representatives voted to pass its first two bills of the year. House Bills 4001 and 4002 keep tipped wages at 38% of minimum wage and maintain an earned sick time system for businesses. Both bills passed 63 to 41, mostly down party lines.
State Rep. Dave Prestin on Thursday voted in support of House Bills 4001 and 4002, which he said will restore the tip credit and protect small businesses from intrusive paid sick time mandates. In a release, Prestin said The plan was introduced in response to a Michigan Supreme Court decision from last summer that forced unrealistic rules and expenses on small businesses and restaurants.
Prestin has spent his entire professional career engrossed in the service industry. In his late teens and twenties, Prestin served and bartended at local restaurants. Later, he owned and operated a series of independent restaurants across the country. Most recently, he owned and operated a truck stop in Cedar River, which included a full-service restaurant as well.
“I took pride in my properties, the people we employed, and the experiences we provided. But if I were staring down the barrel of these changes without any imminent relief, I would’ve been forced to shut everything down without a second thought,” Prestin said. “It’s simply impossible to take your budget from last year – probably already razor-thin considering inflation right now – throw in a 50% increase in expenses and still expect to operate successfully. Someone would have to get the short stick, whether it be the staff who get laid off, the reduction in product quality, or the massive increase in consumer cost. Without legislative action, independent restaurant and small business owners across Michigan, especially in the U.P., will be forced to make these excruciating decisions or shut down entirely. It cannot be allowed to happen.”
Prestin noted that independent restaurants, smaller operations not supported by larger chains, will feel the brunt of the changes. These operations make up the vast majority of restaurants and the food service industry in the U.P.
HB 4001, passed Thursday, ensures the tip credit is maintained at 38% – protecting the livelihoods of servers, bartenders, and other tipped workers, many of whom make $30 to $40 dollars currently. The bill also guards small businesses from impossible new expenses that were expected should the credit have been phased out.
House Bill 4002 allows workers and small businesses to retain the paid leave options that work for them. The plan also clarifies the looming rules, viewed by many as a one-size-fits-all mandate that is unrealistic and so confusing even lawyers can’t understand.
After the vote, Leader Ranjeev Puri (D-Canton) issued the following statement:
“Despite several attempts by Democratic members to improve the bills via amendments, their attempts were not met with good faith efforts by their Republican counterparts. Michigan workers need and deserve fair wages and fair benefits. Republicans’ bait-and-switch tactic on the people’s initiative is anti-worker, anti-livable wage and anti-work-place wellness. House Dems reject the idea that we need to make a choice between workers and businesses. I urge GOP leadership to work for the people of Michigan, not against them. The passage of these bills, especially without a good faith effort to consider amendments, is a disservice to Michigan workers and is directly against the will of the people. As Democratic Leader, I will continue advocating to build people up — Michigan workers deserve to be our top priority.”
Both bills now move to the Senate for further consideration.
