South Michigan News

State Representative Sarah Lightner has cast her vote in favor of a bipartisan agreement aimed at preserving Michigan's tip credit, establishing fair earned sick time policies, and providing stability for small businesses and their employees. This decision follows extensive negotiations between House Republicans and Senate Democrats, culminating in a compromise before the February 21 deadline set by a Michigan Supreme Court ruling.

"This plan is a common-sense win for Michigan’s small businesses, restaurant workers, and economy," Lightner stated. "Servers and bartenders made it clear they want to keep the tip credit, and we heard them loud and clear. This legislation ensures they can continue earning strong wages while also giving small businesses the stability they need to thrive."

The proposed legislation includes Senate Bill 8 and House Bill 4002. Senate Bill 8 allows tipped workers to continue earning their base wage plus tips, maintaining the tip credit at 38% through 2025 with gradual increases leading to a cap of 50% of the minimum wage by 2031. The bill also enforces stricter penalties for employers who fail to adequately compensate their employees.

House Bill 4002 amends Michigan’s Earned Sick Time Act to offer flexible earned leave options for workers while acknowledging the difficulties faced by small and family-owned businesses. The plan protects businesses from unwarranted lawsuits and shields employers from no-call, no-show absences that could disrupt operations, particularly in emergency services and other critical sectors.

"This should never have come down to the last minute, but I’m glad we were able to come together and get it done," Lightner remarked. "We fought to make sure Michigan’s workforce is protected, small businesses can keep their doors open, and families don’t lose their livelihoods due to reckless policies. This bipartisan solution does just that."