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Senators urge urgent action on tip-credit, minimum wage and earned sick time before Feb. 21 deadline
Summary
Lawmakers on the Senate floor warned of economic harm to restaurants and workers if changes required by a court ruling take effect Feb. 21. Several senators urged rapid passage of House bills that would preserve the tip credit and modify sick-leave mandates.
Senators used their floor statements to warn of a looming economic threat to the restaurant and hospitality industry if a court-driven change to tipped wages and sick-leave mandates takes effect on Feb. 21.
Senator Weber said, “Less than a month from now, on February 21, Michigan has a date with economic catastrophe,” and urged the Senate majority to move bipartisan House legislation quickly to prevent job losses. Weber cited industry estimates that a loss of the tip credit could force one in five restaurants to close and put tens of thousands of hospitality jobs at risk.
Senator Albert called for swift action on two House bills, identifying them by number and purpose: “I call on the Senate to approve House Bill 4001 and 4002 as soon as possible. These bills preserve the tip credit, sustainably continue to raise the minimum wage, and continue to provide common sense and workable earned sick time that keeps exemptions for small businesses,” Albert said. He said the measures would provide certainty for employers and workers.
Senators speaking during this period framed their remarks around the economic consequences for servers, small business owners and rural employers. Speakers noted estimates from the Michigan Restaurant and Lodging Association that the loss of a tip credit could lead to closures, job losses, and menu-price increases. Supporters of preserving the tip credit said many tipped workers earn more with the credit than they would under a single wage.
Opponents of the tip-credit system and proponents of a single fair wage were not represented in floor debate recorded in the transcript; the statements were appeals to the chamber to act quickly on bills passed by the House. No formal motions or votes on those House bills were recorded on the Senate floor during the session portion captured in the transcript.
Next steps
Senators asked the majority and committee chairs to prioritize House bills 4001 and 4002 for committee consideration and a floor vote to resolve the statutory requirements before the Feb. 21 effective date specified during discussion.
