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Wednesday, January 29, 2025

Michigan legislature advances bills affecting wages and sick leave

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State Rep. Matthew Bierlein | Michigan House Republicans

State Rep. Matthew Bierlein | Michigan House Republicans

State Representative Matthew Bierlein has cast a significant vote in favor of Michigan workers and small businesses. The legislation, House Bills 4001-02, aims to balance economic growth with worker protection. This move comes in response to a Michigan Supreme Court ruling from last summer that will impose new mandates on small businesses regarding wages and sick leave, set to take effect in February.

Bierlein addressed the legislation on the House floor, stating, “The one word I hear most often when talking to these friends and neighbors about the court-ordered cliff we are facing is ‘devastating.’ Our collective offices have received thousands of messages and calls pleading for a fix. House Bills 4001-02 are a direct response to the dire consequences these hardworking Michiganders – our constituents – face if we do not act against these unrealistic and reckless mandates.”

He emphasized the impact on small businesses, which he described as "the backbone of our local economies." Bierlein noted that these businesses employ community members and warned of potential negative outcomes if no action is taken. “These bills provide desperately needed solutions,” he added.

Bierlein shared examples from his district where local business owners expressed concerns over the impending changes. A family operating bars and restaurants indicated that phasing out the tip credit would challenge their ability to sustain operations. Another business owner running a meat market with her daughter said that without intervention, they might struggle under court-mandated requirements.

House Bills 4001-02 propose maintaining the current 38% tip credit while gradually increasing minimum wage levels annually. They also modify sick leave policies by defining an employer as having 50 or more employees, exempting smaller businesses from certain requirements. Additionally, the bills allow employees to carry over more than 72 hours of unused sick time into subsequent years if permitted by their employer.

The bills now advance to the Senate for further consideration.

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