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Saturday, February 22, 2025

Michigan legislature passes bills protecting small businesses and tipped workers

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State Rep. John Roth | Michigan House Republicans

State Rep. John Roth | Michigan House Republicans

State Representative John Roth has endorsed legislative initiatives aimed at safeguarding small businesses and tipped workers from impending mandates. The House passed House Bill 4002, a bipartisan plan designed to shield small businesses from stringent sick time regulations while ensuring that workers have access to leave time.

“The Legislative process worked today,” said Roth, R-Interlochen. “The Democrats tried giving us their worst, but we pulled them toward the middle and got a deal we could all agree on. If we hadn’t acted, communities across Michigan would’ve been decimated by unrealistic mandates imposed by the Supreme Court. We got far from everything we wanted, but it doesn’t mean this plan isn’t a win. Our agreement today isn’t the end of this conversation, we will continue to work on behalf of tipped workers and small businesses.”

House Bill 4002 ensures that all workers can access sick time while simplifying the initially complex rules set to be implemented. The legislation allows employers to tailor sick time plans according to their business needs and establish specific policies for "no call, no show" situations. It also protects businesses from unfounded lawsuits and other challenges posed by activists.

Additionally, Senate Bill 8 was passed by the House on Wednesday to protect tipped workers. This bill maintains the tip credit at 38% through 2025 with planned annual wage increases, ultimately capping at 50% of the minimum wage by 2031. It also increases penalties for employers who do not adequately compensate their employees.

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