Prompted by Urgency from Speaker Hall – Senate Takes Action on Minimum Wage and Tip Credit Legislation

February 21^st continues to loom over the small business community as we have waited on the Senate to act after the House passed HB 4001 (minimum wage, tip credit) and HB 4002 (Earned Sick Time Act) that would modify the impending mandates handed down by the Michigan Supreme Court on minimum wage/phase out of the tip credit and the Earned Sick Time Act.  These are bills that SBAM supported vigorously, and we have been thankful for Speaker Hall’s leadership in taking swift action on our most pressing issues as both bills passed out of committee and the House of Representatives with bipartisan support. 

Last night, the Michigan Senate passed a substitute to SB 8 (Senate version of minimum wage, tip credit) after the prompting of Speaker Hall to act before the clock runs out. SB 8 was introduced as a counter proposal to HB 4001 and while we did not support SB 8 in its original form, negotiations ramped up yesterday after a morning press conference by Speaker Hall that brought real urgency given the limited amount of time left before small businesses and their employees suffer the consequences of pending changes. The compromise led to the passage of SB 8 with bipartisan support. We want to thank the Senators who voted in favor of this on both sides of the aisle and more specifically to the Speaker who led the charge in these negotiations. Here’s what you need to know about SB 8 as passed: 

*SB 8 (Substitute) passed the Michigan Senate on Thursday, February 13, 2025 

The next question is – what about the Earned Sick Time Act? Within these negotiations came an agreement to tie bar SB 8 to HB 4002. This is essentially a legislative move that ensures that SB 8 cannot pass and go into full effect unless HB 4002 is passed in some form. This means that there will be many discussions between both chambers in the coming week that seek to find consensus on a landing spot for the Earned Sick Time Act. Speaker Hall made public this week an exceedingly reasonable compromise for the Senate to consider. We are encouraging the Senate to show the same level of leadership, bipartisanship, and spirit of compromise shown by the Speaker. 

We are hopeful that some form of compromise can be met that lessens the burden on small business owners and their employees. SBAM’s Advocacy Team will continue to provide updates as they are available, but please plan to see a Call to Action from us next week as we urge the Senate to keep taking steps towards modifying the implementation of the Earned Sick Time Act so our small businesses do not continue to feel the compounding pressures of government mandates. 

ESTA Compliance Webinar – Thursday, February 20^th @ 12:30pm via Zoom 

Learn more about how to implement the Earned Sick Time Act before it goes into effect on February 21^st.  Our team will walk you through how to stay compliant and answer questions in real time following the presentation. 

REGISTER HERE 

*NEW* Minimum Wage/Tip Credit & ESTA Policy Webinar – Monday, February 24^th @ 8:30am via Zoom 

Hear from our SBAM Advocacy Team directly on how policymakers have landed on these very important issues impacting small businesses across Michigan and how to stay active and informed with us. 

REGISTER HERE

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