Great Lakes Wire

Governor Gretchen Whitmer has signed legislation that modifies Michigan's minimum wage and paid sick leave policies. The signing took place before noon on Friday, with the laws filed shortly after 1 p.m. These new regulations are effective immediately as of 12:02 a.m. Friday.

The bills, SB 8 and HB 4002, adjust the law initially set to eliminate the sub-minimum wage for tipped workers and require all employees to receive one hour of paid sick time for every 30 hours worked. After negotiations involving restaurant workers, business groups, and political leaders, a compromise was reached.

Key changes include increasing the tipped wage from 38% to 50% of the minimum wage by 2031 and raising the minimum wage to $15 an hour by 2027 with annual adjustments based on inflation. Small businesses with ten or fewer employees have until October 1 to establish systems for tracking paid leave accruals. They must provide 40 hours of sick time annually, compared to 72 hours required for larger employers.

The legislation also allows employers to specify call-in sick procedures and excludes overtime, tips, and bonuses from pay calculations during sick leave. Interns and startup companies are exempt from the earned sick leave policy. Part-time workers will earn sick time proportionally.

These changes follow a legal battle over initiatives originally adopted by the Republican-led Legislature in response to citizen petitions in 2018. The Michigan Supreme Court ruled that these initiatives should take effect as scheduled.

Despite opposition from organized labor and groups like One Fair Wage, which announced plans for a statewide referendum against SB 8, Democratic lawmakers joined Republicans in supporting the compromise.

Wendy Block of the Michigan Chamber of Commerce emphasized that businesses across Michigan voiced their concerns about the original policies. "The grassroots on this effort saved the day," she said.

In contrast, Saru Jayaraman of One Fair Wage criticized politicians' involvement in deciding worker protections: "We’re mobilizing to ensure voters — not politicians — have the ultimate say."

Justin Winslow of the Michigan Restaurant & Lodging Association responded critically to One Fair Wage's efforts: "Michigan’s restaurant workers did not ask for their help."

Progress Michigan Executive Director Sam Inglot expressed disappointment over what he described as a rollback of gains made through citizen action in previous years.