
The Michigan Senate passed Senate Bill 8 last night, which is considered a contentious adjustment to the previously court-ordered wage hike for tipped workers. The bill, sponsored by Sen. Kevin Hertel, D-St. Clair Shores proposes new minimum wage increases and modulates the portion of the wage reserved for tipped employees. According to CBS News Detroit, the bill passed with a 20-12 vote and is now set to be considered by the House.
Under this new bill, beginning Feb. 21, the minimum wage would rise to $12.48 but is slated to reach $15 by 2027, a year earlier than the previous law targeted. Tipped workers' wages would start at 38% of the minimum wage, gradually increasing to 60% by 2035. In his statement, Hertel emphasized balancing the interests of workers and small business owners, "what mattered was finding a solution that allows small businesses to thrive and keep their doors open," as per CBS News Detroit. The bill aims to stabilize small businesses and ensure tipped workers can gradually earn more.
In a contrasting report from ClickOnDetroit, Senate Majority Leader Winnie Brinks said, "This bipartisan legislation is a result of the overwhelming advocacy from tipped workers who have spoken loudly and been in and out of the Capitol asking for our help." This statement underscores the role worker advocacy played in shaping the legislation.
Meanwhile, the restaurant industry, which has warned of potential closures and job losses, views the bill's passage as a historic win. Justin Winslow, President & CEO of the Michigan Restaurant & Lodging Association, said, "Today marks a significant victory for Michigan's hospitality industry," as the Detroit Free Press reported. However, lawmakers continue to grapple with debated policies regarding earned sick leave, a matter upon which the Governor has suggested bipartisan collaboration or extending negotiations into the summer.