State Rep. Mike Hoadley, of Au Gres, today highlighted the first bills introduced by the Republican-controlled Michigan House – plans that put local job providers and their hardworking employees first as they face great uncertainty.

House Bills 4001 and 4002, which Hoadley co-sponsored, will help bring solutions to a short-sighted Michigan Supreme Court decision from last summer that strike a needed balance between fostering economic growth, protecting livelihoods and preventing mass closures. Without legislative intervention, the court’s decision to phase out the tip credit and enact other unrealistic mandates for sick leave and wages will be effective Feb. 21 and would lead to local job providers having to lay off staff, cut hours or close entirely.

“As we promised employees and employers alike who were impacted by the court’s decision, HBs 4001 and 4002 open the conversation so we can start work on solving the problem,” Hoadley said. “Thousands of tipped wage earners and small business owners have voiced their opposition to the ruling and the impacts it will have on their livelihoods. House Republicans took a stand and are now following through on the promise to make this a priority on Day One.”

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.

House Democrats did not take up legislation on these issues to close out the 2023-24 term, despite bipartisan support for reform and continued pleas from servers, bartenders and the state’s small business sector regarding what the ruling would do to their livelihoods. Hoadley said House Republicans are prioritizing these voices to start the new term.

House Republicans also announced today the formation of a new committee – the Select Committee on Protecting Michigan Employees and Small Businesses – that will work to address tipped wage and earned sick time legislation.