State Rep. Steve Frisbie (R-Pennfield) voted Thursday in support of Republican plans that address the needs of local job providers and their hardworking employees amid uncertainty surrounding Michigan’s tipped wage laws and sick leave policies.

Without legislative intervention, the Michigan Supreme Court’s decision to phase out the tip credit and enact other unrealistic mandates for sick leave and wages would take effect Feb. 21 and could force local job providers to lay off staff, cut employee hours or close entirely.

Republican House Bills 4001 and 4002 help strike a needed balance between fostering economic growth, protecting livelihoods and preventing mass closures. The bills preserve tipped wages, move toward a higher minimum wage and maintain the status quo for earned sick leave while ensuring small businesses with low staff numbers are not harshly impacted by no-notice sick leave that would routinely leave them understaffed and overwhelmed.

“The people of Michigan raised their voices about this issue and House Republicans listened,” Frisbie said. “We’re making sure waitstaff and bartenders continue to earn tips and that small business owners can keep their doors open.”

HB 4001 ensures the tip credit is maintained at 38% – protecting the livelihoods of servers, bartenders, and other tipped workers, many of whom make $30 to $40 dollars currently. The bill also guards small businesses from impossible new expenses that were expected should the credit have been phased out.

House Bill 4002 allows workers and small businesses to retain the paid leave options that work for them. The plan also clarifies the looming rules, viewed by many as a one-size-fits-all mandate that is unrealistic and so confusing even lawyers can’t understand.

The bills received bipartisan support and now advance to the state Senate for further consideration.

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