Legislation from state Rep. Jay DeBoyer that works to keep thousands of people across the state from losing their jobs and countless small businesses from having to close for good due to a short-sighted Michigan Supreme Court decision was advanced today by the Michigan House.

House Bills 4001-02 strike a needed balance between fostering economic growth and protecting workers. The Court’s ruling from last summer that is set to take effect in February will put unrealistic mandates on small businesses regarding wages and sick leave while phasing out the tip credit, which provides a key source of income for workers and in often cases is more than an employee would make with an increased minimum wage – notably in the service industry.

“Last summer, the Supreme Court chose to legislate from the bench and it was a tremendous disservice to the people of Michigan,” said DeBoyer, of Clay Township. “For months, I have heard from people about this issue and what was on the horizon if there weren’t meaningful reforms. It was easy to see that this was the proverbial freight train coming at small businesses and tipped workers like restaurant servers and bartenders. After months of inaction with Democrats in majority, House Republicans are prioritizing reforms and working on behalf of people we represent to protect their livelihoods.”

HBs 4001-02 leave the current 38% tip credit. The plans also move toward a higher minimum wage year over year. DeBoyer’s bill, HB 4002, tweaks an impractical, court-ordered, one-size-fits-all earned sick leave approach that applies to businesses that employ even one person. In its place, the bills define an employer as an entity with 50 or more workers and don’t subject businesses with less than that to the requirements.

DeBoyer’s advancing legislation also lets employees carry over more than 72 hours of unused sick time to an ensuing year if an employer permits, giving added flexibility for workers.

“If these issues were not addressed, the already declining economy in the state of Michigan would be even further devastated,” DeBoyer said. “Our vital small business sector and their workers have been through the wringer the last few years, with government-ordered COVID shutdowns and inflation sending costs soaring. They don’t need this on top of everything they’ve faced.

“The reality is there is an economic implication to this. These plans are a commonsense way forward. They protect jobs and understand the immense role of job providers within our communities.”

The bills now move to the Senate for consideration.