Michigan House OKs amended minimum wage bill
A bill that amended the minimum wage increase in Michigan was passed in the House on Wednesday.
Senate Bill 8 received a 69-40 vote nearly a week after it was approved in the state Senate. Under the revised bill, which is effective Feb. 21, the hourly wage increase would be $12.48, eventually reaching $15 by 2027. It also reduces the minimum wage increase for tipped workers to 38% beginning Feb. 21, gradually increasing to 50% by 2031. Employers who fail to pay the tipped minimum wage would be subject to a $2,500 fine.
For lawmakers, it was a race against time, as the original law that was restored by the Michigan Supreme Court was scheduled to go into effect on Friday.
In 2024, the high court ruled 4-3 in favor of reinstating major changes to the minimum wage and sick leave law sought by advocates for low-wage workers. The court concluded that a move by Republican lawmakers in 2018 called "adopt and amend" was unconstitutional.
The original law would have increased the hourly minimum wage to $14.97 by 2028, followed by annual inflation adjustments determined by the state treasurer. It would have also required a 48% increase for tipped workers until it reached 100% by 2030.
Prior to the Senate vote, House Speaker Matt Hall, R-Richland Township, called on Democrats to pass the bill to slow down the wage increases and preserve the tipped wage. Hall warned that not passing the bill would be bad for business.
SB 8 is tied to House Bill 4002, which focuses on sick paid time. The Earned Sick Time Act would increase mandatory paid leave from 40 hours to 72 hours beginning Feb. 21. Employers with less than 50 workers would no longer be exempt from offering paid sick time.
