North Michigan News

State Representative John Roth, a Republican from Interlochen, has successfully pushed his legislative plan through the Michigan House to restore the tip credit and protect small businesses from paid sick time mandates. The two bills, House Bills 4001 and 4002, received strong bipartisan support.

The proposed legislation comes in response to a Michigan Supreme Court decision that imposed new mandates on small businesses regarding wages and sick leave while phasing out the tip credit. Roth argues that these changes would lead to increased payroll costs for restaurants, potentially causing them to reduce staff or close.

Roth emphasized the potential negative impact of not acting on this issue: "If we don’t act, family restaurants and businesses that have been around for generations will cease to exist," he said. He noted that nearly 40,000 letters had been received in support of maintaining the tip wage.

Under current law, Michigan's minimum wage is $10.56 per hour but is set to increase significantly if no action is taken. Roth's plan seeks to maintain the tip credit at its current rate of 38% while allowing gradual increases in minimum wage up to $13 an hour by next year and further increases until 2030.

House Bill 4002 aims to allow workers and small businesses flexibility with paid leave options. It also seeks to clarify rules considered confusing by many.

The bills now move forward to the Senate for consideration.