Tri-City Sun

State Representative Bill G. Schuette has been appointed as the chair of a new select committee focused on supporting Michigan workers and small businesses. The committee aims to address concerns related to employee tips and business operations in the state.

Schuette, representing Midland, emphasized the urgency of the situation, stating, “Hard working restaurant employees and small businesses are facing a looming cliff that will rob them of their well-earned tips and could shutter many family-owned businesses.” He further explained that House Republicans have prioritized this issue by introducing bills to restore the tip credit and amend earned sick time policy.

The establishment of the Select Committee on Protecting Michigan Employees and Small Businesses comes in response to a recent Michigan Supreme Court decision. This ruling imposes mandates on small businesses concerning wages and sick leave while phasing out the tip credit, which is crucial for many service industry workers.

Despite bipartisan support for reform, House Democrats did not advance legislation on this matter during the 2023-24 term. Schuette highlighted the potential consequences if no action is taken: “The court’s decision is effective in February. If no action is taken, a majority of restaurant operators in Michigan are going to have to start laying off staff and customers are unfortunately going to see higher prices as places try to make ends meet.”

In response, two House Republicans have introduced House Bills 4001 and 4002. These proposals aim to balance economic growth with worker protection by preserving tipped wages, moving toward a higher minimum wage, and maintaining current earned sick leave policies without unduly burdening small businesses.

The select committee comprises 15 members from both Republican and Democrat parties. It plans to convene its first hearing next week.