January 27th, 2025
As one of its first actions of the 2025-26 legislative session, the Michigan House passed bipartisan legislation to save the state’s tip credit system and protect thousands of hospitality industry jobs.
The votes follow a Michigan Supreme Court ruling mandating changes to minimum wage laws and the elimination of the tipped credit system relied upon by hospitality employees. Without legislative action, these changes will take effect on Feb. 21 and have devastating impacts on small business owners and their employees.
House Bills 4001-4002 maintain the current 38% tip credit while moving toward a higher minimum wage year over year. They also introduce more flexibility for earned paid sick leave to better reflect the needs of Michigan workers.
The bills now head to the Senate for consideration. The Senate should follow the House’s lead and move quickly to pass this legislation to save Michigan’s hospitality industry. back...
The votes follow a Michigan Supreme Court ruling mandating changes to minimum wage laws and the elimination of the tipped credit system relied upon by hospitality employees. Without legislative action, these changes will take effect on Feb. 21 and have devastating impacts on small business owners and their employees.
House Bills 4001-4002 maintain the current 38% tip credit while moving toward a higher minimum wage year over year. They also introduce more flexibility for earned paid sick leave to better reflect the needs of Michigan workers.
The bills now head to the Senate for consideration. The Senate should follow the House’s lead and move quickly to pass this legislation to save Michigan’s hospitality industry. back...
