State Rep. Matthew Bierlein today joined his House colleagues in advancing monumental legislation that protects livelihoods in Michigan.

House Bills 4001-02 strike a needed balance between fostering economic growth and protecting workers. A Michigan Supreme Court ruling from last summer that is set to be effective 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.

“The one word I hear most often when talking to these friends and neighbors about the court-ordered cliff we are facing is “devastating,” Bierlein said when addressing the legislation on the House floor. “Our collective offices have received thousands of messages and calls pleading for a fix. House Bills 4001-02 are a direct response to the dire consequences these hardworking Michiganders – our constituents – face if we do not act against these unrealistic and reckless mandates.

“This is not just a legislative issue. It’s a human issue. Small businesses are the backbone of our local economies, employing our neighbors, friends and family members. They are the cornerstones of our communities and have been warning us what is about to happen if we do not intervene. These bills provide desperately needed solutions.”

Bierlein provided a pair of examples from within his House district as he has been communicating with constituents on the issue. A family who owns and operates several bars and restaurants in the area expressed to him in recent weeks how the tipped wage and earned sick time laws would create significant challenges not just for their family, but for their employees as well. If the Court’s decision becomes effective, the family-owned business disclosed that it would be nearly impossible for them to sustain and grow their operations, putting their team at risk.

Another local business owner who purchased a small country meat market in Caro with her daughter told Bierlein that the plans would allow them to continue growing, supporting their nine employees and remaining open seven days per week instead of buckling under court-ordered mandates they can’t afford.

HBs 4001-02 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 now move to the Senate for consideration.

PHOTO INFORMATION: State Rep. Matthew Bierlein, of Vassar, speaks on House Bills 4001-02 before the Michigan House on Thursday, Jan. 23.