First bills advanced of term address pressing policy issue facing state

State Rep. Greg Alexander today voted to advance legislation that will keep small businesses throughout the region, and their workers, from seeing the devastating consequences of a Michigan Supreme Court decision that is set to be effective in February.

House Bills 4001-02 strike a needed balance between fostering economic growth and protecting workers. The court’s ruling from last summer 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.

“The Democrat majority failed to address this issue at the end of the last legislative term, but House Republicans are leading the way to safeguard the jobs, pay and benefits of workers ahead of the Feb. 21 deadline,” said Alexander, of Carsonville. “This was a priority for many people I represent, and it was past time to deliver action to ensure jobs aren’t lost and many small businesses who are the cornerstone of our communities don’t have to close their doors for good.”

The plans leave the current 38% tip credit while moving toward a higher minimum wage year over year. They also tweak 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.

The bills also let employees carry over more than 72 hours of unused sick time to an ensuing year if an employer permits, giving added flexibility for workers.

HBs 4001-02 received bipartisan support as they advanced through the House. The proposals now move to the Senate for consideration.