State Rep. Jaime Greene this week voted for a bipartisan solution that will maintain Michigan’s tip credit, implement fair earned sick time policies, and provide stability for small businesses and the workers they employ.

The plan, which includes Senate Bill 8 and House Bill 4002, strikes a balance between protecting workers and supporting Michigan’s job providers. The agreement comes after lengthy negotiations between the House Republicans and Senate Democrats, reaching a compromise just ahead of the Feb. 21 deadline when changes ordered by a Michigan Supreme Court ruling were set to take effect.

“This plan isn’t perfect, but it’s far better than the alternative,” said Greene, R-Richmond. “We were facing a situation that could have devastated small businesses and upended the incomes of thousands of servers and bartenders. While I would have preferred a different solution, this compromise at least ensures our job providers can keep their doors open and workers can continue to earn their tips.”

Senate Bill 8 ensures tipped workers continue earning their base wage plus tips, keeping the tip credit at 38% through 2025 while implementing gradual increases, ultimately capping at 50% of the minimum wage by 2031. The bill also strengthens penalties for employers who fail to properly compensate their employees.

House Bill 4002 fixes Michigan’s Earned Sick Time Act to provide flexible earned leave options for workers while recognizing the challenges faced by small and family-owned businesses. The plan also safeguards businesses from baseless lawsuits and protects employers from no-call, no-show absences that could leave workplaces short-staffed, particularly important in emergency services and other critical industries.

“This is a situation where we had to act,” Greene said. “The Supreme Court ruling would have made it harder for small businesses to survive and could have led to job losses. This plan isn’t ideal, but at least it gives businesses and workers a fighting chance. We can’t let the perfect be the enemy of the good.”