State Rep. Sarah Lightner 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 is a common-sense win for Michigan’s small businesses, restaurant workers, and economy,” Lightner said. “Servers and bartenders made it clear they want to keep the tip credit, and we heard them loud and clear. This legislation ensures they can continue earning strong wages while also giving small businesses the stability they need to thrive.”

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 should never have come down to the last minute, but I’m glad we were able to come together and get it done,” Lightner said. “We fought to make sure Michigan’s workforce is protected, small businesses can keep their doors open, and families don’t lose their livelihoods due to reckless policies. This bipartisan solution does just that.”