Michigan’s minimum wage law is at the center of a heated debate as lawmakers push changes ahead of its scheduled rollout. A bill that speeds up wage increases for non-tipped workers while capping wages for those who rely on tips passed the state Legislature on Wednesday, setting the stage for a potential showdown before the law takes effect on Friday.
Under the existing law, both tipped and non-tipped workers would see gradual increases until they are earning the same wage by 2030. But this bill accelerates pay raises for non-tipped workers, ensuring they reach $15 an hour by 2027, while locking in a lower base wage for tipped employees at half the rate of other workers. Supporters call it a necessary measure to protect businesses, while opponents argue it undermines the will of the people.
“It’s not perfect, but it is an action, an immediate action that’s going to help preserve our tip credit and the tip wage system. And I think that’s vital in here to the restaurant industry,” said Representative Bill G. Schuette (R-Midland) after the House vote on Wednesday. The bill now heads to Governor Gretchen Whitmer, but in order for it to take effect immediately, the Senate would need to approve it by a supermajority—a threshold that could be difficult to reach in the Democratic-controlled chamber.
The response from Michigan’s workforce and advocacy groups has been swift. One Fair Wage, the organization behind the original petition to raise the minimum wage for all workers, argues that passing this bill is not only unjust but also illegal. The group issued a statement on Tuesday, citing a legal opinion from University of Michigan law professor Samuel Bagenstos, who warned against legislative interference before the law’s implementation.
“The Legislature’s original adopt-and-amend constitutional violation has meant that the Wage Act and Earned Sick Leave Act have been in suspended animation for years and have still not gone into effect. For the Legislature to amend these initiatives now, before letting them take effect, would be to once again ‘sidestep the people’s reserved power,’” Bagenstos wrote.
The back-and-forth over this legislation mirrors a broader pattern of legislative maneuvers in Michigan. In 2018, lawmakers preemptively adopted a minimum wage increase before it could reach voters on the ballot, only to weaken it later through a controversial “adopt and amend” tactic. That decision sparked a court battle, culminating in a ruling that set the February 21 deadline for implementation. Now, as that date looms, the state Legislature is attempting another preemptive move that critics say echoes the same pattern of undermining voter-led initiatives.
Business leaders and Republican lawmakers argue that without modifications, the law could financially cripple restaurants and bars, which would have to pay servers and bartenders a full hourly wage regardless of tips. House Speaker Matt Hall (R-Richland Twp) made it clear that any compromise must include provisions that protect small businesses and limit liability for employers.
“I think we’re laying out things that we need to protect in order to do a deal here,” Hall said during a press conference. He stressed that businesses need clear guidelines on how sick leave is earned and should have flexibility in how they comply with the law.
The ongoing negotiations extend beyond minimum wage, as this bill is tied to another high-stakes policy: Michigan’s earned sick leave law. Scheduled to take effect on Friday alongside the minimum wage law, this legislation guarantees non-federal employees paid time off based on hours worked and the size of their employer. Business groups oppose the law as written, citing concerns about excessive administrative burdens and a lack of safeguards against potential abuse.
House Minority Leader Ranjeev Puri (D-Canton) dismissed the notion that protecting workers’ rights and supporting businesses are mutually exclusive.
“There’s been a very false choice presented where we have to pick between business and workers. And I don’t think that that is the reality of the situation here,” Puri told reporters.
For this bill to become law before Friday, it must pass with immediate effect in the Senate, which could make for a long and contentious session on Thursday. Any changes made by the Senate would require approval from the House before being sent to the governor’s desk. With both the sick leave and minimum wage bills tied together, neither can take effect unless both are signed into law.
For restaurant workers who have long relied on tips to make ends meet, this bill signals another fight over economic stability. Advocates argue that a two-tiered wage system disproportionately harms Black and brown workers, who make up a significant portion of the service industry workforce. Many workers and organizers had hoped that the new law would finally provide fair wages across the board.
Meanwhile, the business community continues to push back, claiming that increased labor costs could force them to shut down. Some Democrats have sided with Republicans, arguing that a phased approach is necessary to avoid economic disruption. Others remain firm in their stance that the law should take effect as originally planned.
The upcoming Senate vote will determine whether this legislation becomes law before Friday’s deadline or if Michigan’s minimum wage law proceeds as originally written. For now, the fate of thousands of workers hangs in the balance, caught between legislative negotiations and the demands of the people who put this policy into motion.
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