State Rep. Donni Steele, R-Orion Township, issued the following statement on the passage of House Bills 4001 and 4002, the first two bills of the legislative term, which will restore the tip credit and protect small businesses from intrusive paid sick time mandates. The bills passed the House with overwhelming bipartisan support.

“The House approving these bills was a critical first step toward protecting our tipped workers and small businesses. We still have a lot of work to do, but today’s votes should serve as a signal to people and families across Michigan that House Republicans intend to keep that promise we made to restore the tip credit and protect small businesses.

“Without the changes included in these bills, I know there are servers in Lake Orion who will lose their jobs – restaurants simply cannot afford what’s coming. We’re not talking about big chains; we’re talking about the locally owned operations that have been serving our communities for decades – that’s what we stand to lose.

“These dire circumstances make it all the more important that the Senate does not drag its feet when considering these bills. This doesn’t need to be a divisive issue, days like today prove that bipartisan cooperation is possible. I encourage the governor and my colleagues in the Senate to follow our lead and reach across the aisle so we can get this done.”

HB 4001 ensures the tip credit is maintained at 38% while allowing for reasonable annual minimum wage increases. Leaving the tip credit at its current level allows servers and other tipped wage workers to continue earning far beyond minimum wage through their tips.

House Bill 4002 allows workers and small businesses to retain the paid leave options that work for them. The plan also clarifies the looming rules, viewed by many as a one-size-fits-all mandate that is unrealistic and so confusing even lawyers can’t understand.

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