State Rep. Kathy Schmaltz (R-Jackson) today joined her colleagues in advancing two critical bills that save tipped wages and support small businesses across Michigan.

House Bills 4001-02, which address the potential fallout from a recent Michigan Supreme Court decision, were approved by the House Select Committee on Protecting Michigan Employees and Small Businesses, on which Schmaltz serves.

“If this ruling goes into effect, it will devastate our workers and businesses, especially our restaurant industry. We needed to act quickly,” Schmaltz said. “This legislation is about listening to the people who power our local economies — our servers, bartenders, bakers, and small business owners — and taking action to protect their livelihoods.

“The Supreme Court’s ruling created an unsustainable situation that threatened jobs, raised costs, and placed undue burdens on family-owned businesses. These bills strike a balance between supporting workers and ensuring that businesses can continue to thrive in our communities.”

The legislation preserves the tipped wage system, which many workers testified provides them with higher earnings than minimum wage. It also moves Michigan toward a higher minimum wage while maintaining flexibility for small businesses.

The measures adjust the paid sick leave policy by ensuring that only businesses with 50 or more employees are required to provide mandatory sick leave, preventing smaller employers from being overwhelmed by mandates they cannot afford to meet. Under the bills, employees will also gain added flexibility with the ability to carry over more than 72 hours of unused sick time into the following year if allowed by their employer.

“This is about protecting hardworking people and ensuring our small businesses are successful and can continue to serve as the backbone of our communities,” Schmaltz said.

She expressed gratitude to the many individuals who shared their stories in support of the bills, including Keegan Rodgers, owner of the Lake House Bakery in Chelsea, and servers from the Jackson Area, including Amy Covert.

“I want to thank the many servers, bartenders, and small business owners who testified, wrote letters, and otherwise reached out to share how this ruling would hurt them,” Schmaltz said. “Your voices matter, and I am proud to take action on your behalf.”

The plans now move to the full House for consideration.

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