State Representative Doug Wozniak, R-Shelby Township, voted to support tipped workers and protect small businesses from harmful mandates that were set to take effect at 12:01 a.m. Friday, February 21. The negotiated plan, which balances the needs of both workers and employers, passed the House and Senate last Thursday night.

“This is a solution that ensures workers still have access to sick leave while preventing excessive burdens on small businesses,” said Wozniak, R-Shelby Township. “Many people across Michigan expressed concerns about preserving the tipped wage and earned sick time structure, and I’m pleased we were able to find common ground with the Senate to address those needs.”

HB 4002 guarantees workers access to sick leave while adjusting the strict rules that were originally set to take effect. The legislation allows businesses of all sizes to develop sick leave policies that align with their needs. It also grants businesses flexibility in handling “no call, no show” situations and provides protections against unreasonable attacks.

“Small business owners work tirelessly to serve their customers and keep their business running smoothly,” said Wozniak. “I’ve heard from many business owners in the district who were deeply concerned about these regulations. The new approach gives them the flexibility they need to operate effectively while still ensuring fair treatment for workers.”

Senate Bill 8, which passed on Wednesday, protects the tipped wage system by maintaining the tip credit at 38% through 2025, followed by 2% annual increases until reaching a 50% cap in 2031. The legislation also strengthens penalties for employers who fail to compensate their employees properly.