State Rep. Jaime Greene and the Michigan House today voted to protect tipped wages and support small businesses across Michigan.

The plan, which received bipartisan support, provides a solution for workers and job providers who are concerned about losing their livelihoods due to a Michigan Supreme Court decision set to take effect on Feb. 21.

“If this ruling were to go into effect, it would devastate our workers and businesses, especially those in the restaurant industry. We need to act quickly,” said Greene, R-Richmond. “We’ve heard feedback from so many hardworking servers, bartenders, bakers, and small business owners, and now we’re taking action to protect their jobs and businesses.”

Unless the Legislature takes action, the Michigan Supreme Court decision will establish new, confusing mandates for earned sick time that will burden small businesses and take flexible options away from workers. The ruling will also eliminate the tipped wage option, which enables restaurant servers and bartenders to make far above minimum wage by collecting large tips.

House Bill 4001 preserves the current tipped wage system, which most people in the service industry say provides them with higher earnings than the standard minimum wage. At the same time, it sets Michigan on a path toward a higher minimum wage while maintaining flexibility for small businesses.

House Bill 4002 fixes the Earned Sick Time Act by clarifying the law’s requirements and giving small businesses and their workers the flexibility to determine the paid sick time benefits that work for them. By ensuring that only businesses with 50 or more employees are required to provide mandatory sick leave, the plan will also help protect smaller employers from being forced out of business by mandates they cannot afford to meet.

“Our plan provides the relief and stability that our small businesses need to continue creating jobs and opportunities for our communities,” Greene said. “We’re ensuring that Michigan remains a great place to work and do business.”

Greene expressed gratitude to the many people who shared their stories and spoke out about how the ruling and these bills will affect them.

“I want to thank the many servers, bartenders, and small business owners who testified, wrote letters, and reached out to share how this ruling would impact them,” Greene said. “I have heard your concerns, and hopeful these changes will move our state in the right direction.”

The measures now move to the Senate for further consideration.

###