North Michigan News

State Representative John Roth supported the passage of Senate Bill (SB) 8 on Wednesday, a bipartisan effort aimed at protecting tipped workers' livelihoods by maintaining the tip credit while allowing for reasonable wage increases. Roth played a key role in shaping the House version of this plan, parts of which were incorporated into SB 8 during negotiations.

“I’m glad that the Senate agreed with us and came across the aisle to protect tipped workers across Michigan,” stated Roth, R-Interlochen. “This plan ensures workers get a raise while allowing them to keep their hard-earned tips. I am disappointed that we’re this close to the February 21 deadline and are just now getting solutions across the finish line. Tipped workers and small business owners shouldn’t have had to wait this long. Don’t get me wrong, today was a win. But it will all be for nothing if the Senate Democrats don’t come to their senses and accept our common-sense proposal on sick time rules.”

The bill maintains the tip credit at 38% through 2025 with annual increases planned until it reaches a cap of 50% of the minimum wage by 2031. It also includes stricter penalties for employers who do not adequately compensate their staff.

SB 8 is linked legislatively to another bill addressing paid sick time, requiring both bills to be signed into law for either to take effect. Negotiations over sick-time provisions between House and Senate leaders are still underway.