Tri-City Sun

State Representative Mike Hoadley of Au Gres has expressed support for a bipartisan agreement aimed at safeguarding Michigan's tip credit and establishing practical paid sick leave policies. This move comes in response to a Michigan Supreme Court ruling from last summer, which imposed challenging wage and sick leave mandates on small businesses, potentially affecting livelihoods across the state.

Hoadley emphasized the importance of legislative action, stating, "House Republicans have been sounding the alarm on this issue since that disastrous, short-sighted ruling came down." He noted that workers and small business owners were concerned about the potential economic impact of these mandates. According to Hoadley, reforms addressing these issues were prioritized by House Republicans as soon as the current term began.

He also criticized Democrats for not prioritizing this issue earlier, saying, "Unfortunately, Democrats in control of the House last term dragged their feet and this issue was not prioritized until just before the Court’s decision was set to become effective."

House Bill 4002 ensures access to sick time for all workers while simplifying previously complex rules. The bill allows employers to select suitable sick time plans and customize policies regarding "no call, no show" incidents without facing baseless lawsuits.

Senate Bill 8, which Hoadley supported on Wednesday, seeks to protect tipped workers by maintaining the tip credit at 38% through 2025 with annual increases planned until it reaches 50% of the minimum wage by 2031.

Surveys indicate strong support for retaining the tipping system among Michigan restaurant servers. Over 80% favored keeping it in place. Additionally, more than 92% of restaurant operators reported they would need to raise menu prices if the tipped wage were eliminated; 66% might lay off some workers, and 20% could face closure.

Following approval from both chambers—Republican-controlled House and Democrat-controlled Senate—HB 4002 and SB 8 await the governor's signature to become law.