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Tuesday, January 14, 2025

Michigan forms committee to address court ruling affecting tipped workers

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State Rep. Ken Borton | Michigan House Republicans

State Rep. Ken Borton | Michigan House Republicans

State Representative Ken Borton has been appointed to a newly formed committee aimed at addressing the repercussions of a Michigan Supreme Court decision that could impact tipped workers and small businesses. The changes, if not addressed by legislation, are set to take effect on February 21.

"In forming this committee, House Republicans are putting a line in the sand and proving now is the time to save our tipped-wage workers and small businesses. Not next month. Not next week. Now," said Borton, R-Gaylord. "Stalling by legislative Democrats put us in this mess in the first place. We aren’t going to waste another second before we find a solution."

The court ruling imposes mandates on small businesses concerning wages and sick leave while eliminating the tip credit, which many workers rely on as a significant part of their income, particularly in the service industry.

The Select Committee to Protect Michigan Workers and Small Businesses will focus exclusively on legislation related to tipped wages and earned sick time. It will review House Bills 4001 and 4002, introduced by Representatives John Roth and Jay DeBoyer.

These bills aim to address last summer's court decision while balancing economic growth with protecting jobs and preventing business closures.

In addition, state Senators have proposed their own legislation regarding the tip credit and Earned Sick Time Act.

"The Senate introducing their own set of bills is hopefully a sign they’ll stop dragging their feet," Borton stated. "Protecting the livelihood of servers and small business owners should be a bipartisan issue, and it seems to be one now – I can only hope it stays that way."

The House committee plans to hold its initial meetings next week.

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