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House passes bill changing tipped-wage schedule and preserving tip credit; 63-41

2256833 · January 23, 2025
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Summary

The Michigan House voted 63-41 to pass House Bill 4001, an amendment to the Workforce Opportunity Wage Act that keeps a tip credit while phasing changes to tipped and minimum wages; supporters said it protects restaurants and tipped workers, opponents said it undermines a voter-backed wage increase.

LANSING — The Michigan House of Representatives on Monday passed House Bill 4001, an amendment to the Workforce Opportunity Wage Act, by a roll-call vote of 63 to 41. Lawmakers voted to advance a new schedule for tipped and minimum wages and to retain the existing tip-credit framework, and the House ordered the bill to take immediate effect.

Supporters said the measure responds to a Michigan Supreme Court ruling and protects small restaurants and the livelihoods of servers and bartenders. Opponents said the bill subverts a voter-backed minimum-wage schedule and will keep some workers below a full minimum wage for years.

The bill, introduced by Representative Roth, was considered on second reading and advanced to third reading after the chamber adopted a committee substitute. Multiple members offered floor amendments seeking faster or different timelines for eliminating the tipped subminimum wage; the House rejected those amendments before passing the final bill.

Representative Song (Representative Song) spoke on the floor in support of an amendment that would phase in higher tipped wages, saying, "Tipped workers deserve the same protections, stability, and security that other workers enjoy." That amendment was not adopted. Representative Scott (Representative Scott) urged colleagues to reject the bill, calling it "yet another assault on Michigan's hardworking families" and arguing it would block minimum-wage increases the public expected after the 2018 ballot initiative and subsequent court proceedings.

Representative Roth (Representative Roth), sponsor of HB4001, asked members to support the package as a way to "save TIP workers and small businesses," saying the bill would provide a clear schedule employers can follow and avoid sudden disruptions when court-ordered changes take effect.

The House clerk announced the final tally after a recorded roll-call vote: 63 aye, 41 nay. The chamber also approved a separate motion to give the bill immediate effect.

What passed on the House floor was a legislative package that retains a tip credit and sets a staged timeline for changes to wage rates; the transcript records numerous proposed amendments that were not adopted. The bill now proceeds under the legislative process set by the House for next steps.

Votes and recorded motions are reflected in the official House journal. The full text of HB4001, the committee substitute, and the rejected floor amendments were discussed on the record during the session.