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Lawmakers pass sick time, tipped wage acts with little time to spare

by Sophia Murphy
February 20, 2025 - Updated on February 21, 2025
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LANSING, Mich. (WZMQ) – Lawmakers worked late into the night, negotiating the conditions of a new Earned Eick Time Act (ESTA) against a midnight deadline.

In July, the Michigan Supreme Court reversed changes to the state’s tipped wage and ESTA laws, setting in motion a Friday, February 21 date for the old 2018 law to kick in.

Michigan to phase out tipped wage system as highest court overturns 2018 Wage Act changes

Both the House and the Senate met into the night to pass a new law before the 2018 statute sets in. Wednesday, the House passed the bill to change Michigan’s minimum wage and tipped wage percentage, voting 69 to 40 on Senate Bill 8. The bill sets minimum wage at $12.48, and tipped wages at 38% of that, gradually raising the percentage until it hits 50% in 2031. Today, the Senate gave that bill immediate effect, but the legislation is tie-bared to House Bill 4002, meaning both bills have to pass a vote before they can be sent to the governor for a signature.

HB 4002 amends ESTA, lawmakers negotiated the specifics until almost 11 PM, working out a final version of the bill that passed in the Senate 26-10. The House confirmed the substitutes just after 11 PM, 81-29. The final act requires 72 hours of paid sick leave for full-time employees with carve-out exemptions for new and small businesses.

The laws still need a signature from the governor before they’ll take effect. It’s unclear how businesses will be required to act in the meantime, but it’s expected the Department of Labor and Economic Opportunity won’t enforce the 2018 law if the bills don’t receive the governor’s signature before midnight.

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