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Rep. Thompson votes for needed compromise to protect workers, preserve Michigan’s tip credit
RELEASE|February 20, 2025

State Rep. Jamie Thompson on Wednesday voted for bipartisan legislation that safeguards the tip credit system for service industry workers and other employees throughout Michigan.

“As legislators, we all came to Lansing to be a voice for our constituents and their families while putting their priorities and needs first,” said Thompson, of Brownstown. “We’ve heard from countless workers and small businesses about the disaster that would occur if a short-sighted Michigan Supreme Court ruling is allowed to go into effect this Friday. People have been clear. They will lose their livelihoods, and many local businesses in our communities will have to close their doors for good. Instead, this proposal is a compromise that moves us closer to closing the door on this pending disaster. That’s how state government should work, and this is a big win for Michigan workers.”

Senate Bill 8 maintains the tip credit at 38% through 2025 while implementing annual increases, eventually capping at 50% of the minimum wage in 2031. The plan also heightens the penalties for employers who fail to fairly compensate their staff.

With SB 8 going to the governor, Thompson said focus must now turn to addressing paid sick time before the Court’s ruling becomes effective Friday. SB 8 is legislatively tied to sick leave reforms that make sense for both workers and job providers, meaning both would have to be signed into law for either to take effect.

“There are many unintended consequences that will arise from sick leave mandates that have been directed by the Court,” Thompson said. “By allowing for no-call, no-show leave, emergency medical services could be impacted for the places we call home if 9-1-1 operators are left understaffed and overwhelmed. Our local schools could be impacted if teachers are out without notice, which ultimately impacts our children’s ability to learn in the classroom. This wouldn’t be fair to job providers or other employees who would be stretched thin. We need a more practical way forward, and we’re going to continue fighting in the Legislature to get these needed changes across the finish line.”

PHOTO INFORMATION: State Rep. Jamie Thompson, of Brownstown, speaks in support of Senate Bill 8 on Wednesday, Feb. 19 at the state Capitol in Lansing.

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