Michigan Legislature makes moves to change minimum and tipped wages
LANSING, Mich. (CBS DETROIT) — After months of calls to intervene, the Michigan Legislature took action this week on minimum and tipped wages.
In the first days of the session, Democratic lawmakers in the Michigan Senate introduced a set of bills that they say would accelerate the minimum wage increase, strengthen protections against wage theft, and maintain the state's tipped credit.
"Our intention here is to make sure we're addressing their concerns so they can still operate and be successful while protecting workers all at the same time," said state Sen. Kevin Hertel.
The four-bill package introduced by Sens. Kevin Hertel, David Camilleri and Sam Singh aims to be a practical approach to easing the burden on small businesses. The Michigan House also took steps to soften the change.
"We are going to have a special committee come together and thoroughly look at this legislation so that it is flexible for businesses," said Rep. Jamie Thompson.
Raising the state's minimum wage, phasing out the tipped wage credit and offering mandatory paid time off will have a major impact on business owners like Greg Cowley, who co-owns John Cowley and Sons pub in Farmington.
"It's really almost a $75,000 to $100,000 impact on my business," said Cowley.
This week, the pub implemented an automatic 20% gratuity policy to try to keep its services and servers.
John Sellek, a spokesman with Save MI Tips, says that after months without traction, this week has been a breath of fresh air.
"We feel like we broke a logjam, we've got a long way to go and almost no time on our hands. But finally, there's movement both in the House and the Senate. That's exciting," said Sellek. "Now we just need to make sure everything gets wrapped up before mid-February."
