Schmaltz: ‘We heard you and we made this our first priority’

State Rep. Kathy Schmaltz and the Michigan House today voted to protect tipped wages and support small businesses across Michigan.

The plan, which received bipartisan support, provides a solution for workers and job providers who are concerned about losing their livelihoods due to a Michigan Supreme Court decision set to take effect on Feb. 21.

“I’ve heard from so many servers, bartenders, and small business owners who are worried about what these changes from the court would mean for them and their families,” said Schmaltz, R-Jackson. “We can’t stand by and let a misguided court ruling take away their ability to earn a living.”

Unless the Legislature takes action, the Michigan Supreme Court decision will establish new, confusing mandates for earned sick time that will burden small businesses and take flexible options away from workers. The ruling will also eliminate the tipped wage option, which enables restaurant servers and bartenders to make far above minimum wage by collecting large tips.

House Bill 4001 preserves the current tipped wage system, which most people in the service industry say provides them with higher earnings than the standard minimum wage. At the same time, it sets Michigan on a path toward a higher minimum wage while maintaining flexibility for small businesses.

House Bill 4002 fixes the Earned Sick Time Act by clarifying the law’s requirements and giving small businesses and their workers the flexibility to determine the paid sick time benefits that work for them. By ensuring that only businesses with 50 or more employees are required to provide mandatory sick leave, the plan will also help ensure smaller employers are not forced out of business by mandates they cannot afford to meet.

“We’ve spent countless hours listening to the people this impacts the most,” Schmaltz said. “They’ve told us loud and clear — they want to keep the tipping system, and they need easy to understand, practical sick leave policies that work for their businesses and families. Our plan provides that clarity and peace of mind.”

The measures now move to the Senate for further consideration.

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