Tri-City Sun

State Representative Bill G. Schuette has cast his vote in favor of bipartisan legislation aimed at protecting the tip credit system for service industry workers and other employees across Michigan. This legislative action comes in response to concerns about potential negative impacts from a recent Michigan Supreme Court ruling.

Schuette emphasized the importance of this issue, stating, “House Republicans prioritized this issue for the last several months because of the overwhelming number of workers and small business owners who have been clear about the consequences last summer’s Michigan Supreme Court ruling would bring.” He acknowledged that while the legislative compromise is not perfect, it prevents immediate adverse effects such as layoffs and business closures.

The legislation, known as Senate Bill 8, maintains the tip credit at 38% through 2025 and introduces annual increases, capping at 50% of the minimum wage by 2031. It also increases penalties for employers who do not adequately compensate their staff. The bill is linked to another piece of legislation addressing paid sick time issues; both must be signed into law to take effect.

Schuette expressed hope that this agreement will lead to further cooperation on related issues: “I’m hopeful this agreement sets the table for more cooperation on the sick leave portion of the Court’s ruling, which will also have drastic impacts on people’s livelihoods and our local businesses if Lansing fails to deliver solutions.”

As chair of the House Select Committee on Protecting Michigan Employees and Small Businesses, Schuette has led efforts to mitigate job losses and economic challenges stemming from the court's decision. His leadership facilitated progress on plans that preserved the tip credit and developed practical reforms for sick leave policies.