Senate Moves Earned Sick Time, Minimum Wage Changes

Ahead of the February 21 changes to Michigan’s minimum wage and the implementation of the Earned Sick Time Act, this week, the Senate moved forward with legislation amending the forthcoming changes.

Earned Sick Time:

• • Senate Bill 15 was reported by the Senate Regulatory Affairs Committee this week but did not receive a vote by the full Senate.
  • The proposal expands the definition of small businesses from less than 10 employees to less than 25.
  • Allows a business to front-load the required number of paid time off at the beginning of the year.
  • Caps the amount of accrued time an employee could carry over year to year.
  • Shortens the time frame an employee can act on an alleged violation from three years to one year.
  • Removes a provision allowing an employee to bring civil action against their employer for a violation.
  • An employer may be liable for a civil fine of up to eight times the employees’ hourly wage for not providing paid sick time as required under the law.
  • The House previously passed their version of the changes, which were widely supported by the business community.

Minimum Wage:

• • Senate Bill 8 was passed in a bipartisan manner by the full Senate late Thursday.
    • Eight Democratic members and 12 Republican members voted favorably for the bill.
  • The legislation accelerates the state’s minimum wage increase to $15/hour by 2027. This shortens the original timeline, when the increase would not take full effect until 2028.
  • The hourly tipped wage will remain at 38% for the remainder of 2025. It would increase to 50% in 2026 and would continue to increase 2% annually until it reaches 50% in 2031, at which time it would be capped.
    • A previous version of the bill would have the cap at 60%, which would have been reached in 2035.
  • It ties future minimum and tipped wage increases to economic conditions.
  • This bill was tie-barred to House Bill 4002, which makes changes to the Earned Sick Time Act.
    • The tie-bar means both bills will need to pass and be signed by the governor in order for the bills to take effect.
  • SB 8 will be sent to the House for consideration.

We anticipate negotiations to continue through the weekend so the legislation can be passed and signed by the Governor prior to February 21.