State Rep. Jamie Thompson has been appointed to a new select committee that will drive discussion and pursue reforms to help Michigan workers maintain their way of life and small businesses keep their doors open.

The Select Committee on Protecting Michigan Employees and Small Businesses provides immediate action to start the 2025-26 term and stave off economic disaster. The committee’s announcement follows a short-sighted Michigan Supreme Court decision from last summer that puts unrealistic mandates on small businesses regarding wages and sick leave while phasing out the tip credit, which provides a key source of income for workers and in often cases is more than an employee would make with an increased minimum wage – notably in the service industry.

“Many small businesses and their workers have already been through the wringer the past few years with COVID-19 shutdowns and inflation sending costs through the roof,” said Thompson, of Brownstown. “Now they are just over a month away from more government overreach that threatens to close many local businesses for good and eliminate jobs in the process. That’s not the direction our state should be going. We need legislative solutions and this begins that process.

“I am honored to serve on this committee. Many families in communities I represent across Wayne and Monroe counties depend on the tips that are generated from service industry jobs. I will continue to be their voice as we examine this issue and pursue reforms.”

Surveys show that two-thirds of Michigan restaurant operators expect they will need to lay off staff if the mandates are implemented. Additionally, 94% of businesses anticipate significant price hikes for consumers, and one in five full-service restaurants could close permanently.

House Republicans have already introduced the first proposals of the 103^rd Legislature – House Bills 4001 and 4002 – that would strike a needed balance between economic growth and protecting workers.

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.

On Wednesday, state Senators introduced their own proposals to address the tip credit and Earned Sick Time Act.

“Lansing needs to deliver a better way forward for thousands of people whose lives will be upended in February through no fault of their own,” Thompson said. “I am encouraged to see Senate Democrats prioritizing this issue as House Republicans have the past several months.”

The 15-member select committee, which will feature both Republican and Democrat legislators, is set to hold its first hearing next week.