Legislation was introduced making changes to the new laws regarding the state’s minimum wage and paid sick time laws, set to take effect next month. Without action by the legislature, On February 21, the minimum wage will increase to $12.48/hour, and the tipped rate will increase to $5.99/hour. Additionally, for every 30 hours worked, an employee will accrue 1 hour of sick time.
Proposed Changes in the Senate:
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- The bills were introduced by Senators Kevin Hertel (D-St. Clair Shores), Sam Singh (D-East Lansing), and Darrin Camilleri (D-Trenton).
- It would accelerate the increase of Michigan’s minimum wage to $15/hour by 2027, shortening the original timeline where the increase wouldn’t take full effect until 2028.
- The tipped hourly rate would remain at 38% for 2025, then gradually increase over 10 years until it’s capped at 60%.
- Requires larger businesses to provide a minimum of 72 hours of paid sick time to full-time employees and expands flexible requirements to small businesses with fewer than 25 employees.
- Additionally, the bills allow workers to file anonymous complaints against employers, increase civil and criminal penalties for wage theft, and prohibit misclassifying workers as “independent contractors.”
- The bills were referred to the Labor Committee and the Regulatory Affairs Committee.
Proposed Changes in the House:
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- House Bills 4001 and 4002 were introduced by Representatives John Roth (R-Interlochen) and Jay DeBoyer (R-Clay).
- The House adopted a resolution creating the Select Committee on Protecting Michigan Employees and Small Businesses, which is tasked with addressing this issue. It will be chaired by Representative Bill Schuette (R-Midland) and is expected to hold its first hearing next week.
- The legislation changes the rate of increases to the minimum wage, increasing the hourly rate to $12 on February 21, $12.50/hour on January 1, 2026, $13/hour on January 1, 2027, $14/hour on January 1, 2028, and $15/hour on January 1, 2029.
- The legislation also makes changes to the forthcoming paid sick time laws.
