Tri-City Sun

State Representative Bill G. Schuette has spearheaded the advancement of two bills designed to safeguard jobs and prevent the closure of small businesses in Michigan. The House Select Committee on Protecting Michigan Employees and Small Businesses, chaired by Schuette, unanimously moved forward with House Bills 4001-02.

"This is a major step in the right direction to protect our workers and local, family-owned businesses," said Schuette. "I am grateful to the committee for its work, those who came to testify and proud we could send such a strong, bipartisan message on the importance of this legislation."

The committee's actions are timely as they coincide with an approaching effective date for a Michigan Supreme Court decision that could impact employment across the state. Schuette highlighted that failure to act could lead to job losses, increased prices, and closures of family-owned small businesses.

In response to last summer's court ruling, which phased out tipped wages while mandating changes that many see as impractical for small businesses, these legislative proposals aim to preserve tipped wages while gradually increasing the minimum wage. They also modify an original paid sick time initiative to reduce strain on smaller entities.

"House Republicans are delivering solutions on this issue," stated Schuette. "I am hopeful the Senate and the governor will join us in getting these reforms across the finish line in the coming weeks before a single job is lost due to these damaging mandates."

The current tip credit remains at 38%, a rate seen as beneficial by many workers. The new bills propose annual increases in minimum wage while redefining eligible employers for earned sick leave requirements as those with 50 or more employees.

Employees may also carry over more than 72 hours of unused sick time into subsequent years if permitted by their employer, offering additional flexibility.

The proposed legislation will now be considered by the full House.