Minimum wage deal pending, set to increase to $12.48 Friday

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(The Center Square) – A last-minute legislative compromise on a pending minimum wage hike seems poised to pass in Michigan.

The proposal comes just a few days before a previously approved $1.92 increase and mandatory paid time off for illness policies are set to take effect.

A new proposed bill would increase the state minimum wage to $15 by 2027, but would keep the "tip credit" system in place. It would start by raising the minimum wage to $12.48 on Friday, an increase from the current $10.56.

“This agreement is a necessary compromise that provides immediate relief to our small businesses,” said Rep. Ron Robinson, R-Utah. “There is still a lot of work to be done, but this agreement gets us off the path that was leading towards disaster.”

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The current law is scheduled to take effect on Friday, and the proposed bill, if it doesn't pass, will also change the wages for jobs that are paid "tip credit," which allow employees to be hired for less than minimum wage as long as they receive tips.

The tip credit will be phased out in stages, similar to the incremental increase in the minimum wage, which will begin in 2025 and continue through 2029.

Another contentious law that takes effect on Friday is a change to paid sick leave policies statewide, which mandates that all Michigan businesses must provide paid sick leave to their employees. This policy will apply to all employees, including those who are seasonal, part-time, or temporary.

Representative Bill G. Schuette, a Republican from Midland who chairs the House Select Committee on Protecting Michigan Employees and Small Businesses, stated that legislators need to work efficiently to also address the issue of sick leave.

This is a step in the right direction, but more work is needed to address a problematic paid sick leave policy that will go into effect on February 21. Without a legislative solution, many small businesses will face staffing shortages, be overwhelmed, and risk having to permanently close their doors.

Not everyone is pleased with the potential changes to the law.

Garden City. “The proposed bills... fall short for the working class.”

She is willing to make a deal.

For an end to stalling by Democrats.