House passes bill preserving tip credit, revises wage schedule for tipped workers

LANSING — The Michigan House of Representatives on Wednesday approved House Bill 4001, a measure amending the Workforce Opportunity Wage Act to preserve the state—s tip credit and set a new timetable for minimum-wage increases for tipped and non-tipped employees. The bill passed on a recorded vote, 63-41, and the House ordered the measure to take immediate effect.

The bill—s sponsor, Representative Andrew Roth, asked members to support the package as a response to a Michigan Supreme Court decision affecting tipped-wage rules. Representative Roth said the bill —rather than eliminating tipping— offers a clear schedule that employers and employees can follow.

Supporters said the change protects small restaurants and other businesses that rely on tipped labor. Representative Brett Schutte, chair of the select committee on protecting Michigan employees and small businesses, told the House the committee recommended a substitute version of the bill and that the substitute was adopted by the chamber.

Opponents characterized the bill as an attempt to block wage increases the public expected after litigation. Representative Sarah Scott said the bill —seeks to block the implementation of a statewide minimum wage increase directly circumventing the Michigan Supreme Court—s mothering justice decision.— She urged colleagues to restore the wage schedule she said the court and voters had anticipated.

Members debated a series of floor amendments that would have altered the timeline or shifted how tips were handled in calculating wages. Representative Laya Song offered an amendment to phase in higher tipped wages over five years so that tipped workers would reach full minimum wage by 2030; Representative Song said, —Tipped workers deserve the same protections, stability, and security that other workers enjoy.— Other amendments proposed different phase-in periods and day-by-day or shift-by-shift wage supplementation; the House rejected each amendment on the floor.

After debate, the clerk announced the recorded tally for final passage: 63 aye, 41 nay. The majority floor leader, identified in the record as Majority Floor Leader Pastumas, moved for immediate effect; members rose in favor and the immediate effect motion was ordered.

The bill—s passage will change the statutory schedule and preserve a tip credit mechanism in Michigan law; the House record shows the matter now moves toward any subsequent steps required under state law.

Votes at a glance: House Bill 4001 Amend Workforce Opportunity Wage Act; final passage 63-41; immediate effect ordered.