Michigan wage and earned sick time bills signed into law by Whitmer

(FOX 2) - After some late-night dealmaking between lawmakers in Lansing, the Michigan governor has signed new legislation expanding paid sick time and increasing the minimum wage. 

Gretchen Whitmer's signature is the final chapter in a long-running debate over what Michigan's wage laws should be for workers and those that earn tips.

Big picture view:

On Friday afternoon, Whitmer signed two bills that boost the minimum wage, as well as the minimum tipped wage, as well as expand paid sick leave rules for businesses.

The new laws replace scheduled increases in the wage and expanded sick time that were set to go into effect on Feb. 21. Replacing them are scaled-back versions of both rules, raising the tipped wage to 50% of the minimum wage while cushioning small businesses from being required to offer paid sick time to employees.

Both Senate Bill 8, which increases wages, and House Bill 4002, which expands paid sick time, help solve a problem that goes back to 2018 when the original minimum wage ballot measure was set to go into effect.

Now, seven years later, a bipartisan compromise between the Republican-controlled state House and the Democratic-controlled state Senate offers a fix.

What they're saying:

The governor announced the bill-signing in a news release Friday afternoon.

"I’m proud to sign these two bipartisan bills into law that will raise wages, ensure workers can take time off to care for themselves or their loved ones, and continue growing our economy," Whitmer said. " This commonsense compromise was made possible by the Republicans and Democrats who worked together to forge a fair, bipartisan deal."

Among those cheering on the compromise is the restaurant advocacy organization's CEO Justin Winslow.

"We're especially grateful to all those who took the time to truly understand what was at stake - the servers who showed up in Lansing to share their stories, the legislators who visited countless restaurants to learn firsthand how the tip credit works and the many small business owners who opened their books to show the real numbers." 

Michigan's new wage rules

Dig deeper:

There are three facets to Michigan's new wage law that are important to know. Two of them, the minimum wage and minimum tipped wage, fall under SB 8. The earned sick time is part of HB 4002.

Minimum wage rules:

Michigan's minimum wage is set to climb up to $15 over the next few years. The new law includes these scheduled increases:

• Feb. 21, 2025 - $12.48
• Jan. 1, 2026 - $13.73
• Jan. 1, 2027 - $15

The minimum tipped wage, which pertains to servers that earn tips, will see their wages climb as well. The rate is set based on the minimum wage at the time.

• Jan. 1, 2026 – 40% of minimum wage
• Jan. 1, 2027 - 42% of minimum wage
• Jan. 1, 2028 - 44% of minimum wage
• Jan. 1, 2029 - 46% of minimum wage
• Jan. 1 2030 - 48% of minimum wage
• Jan. 1, 2031 - 50% of minimum wage

Earned sick time rules:

Under the bill, employees can accrue at least one hour of paid earned sick time for every 30 hours they work. For workers at businesses with 10 or fewer employees, they can accrue and then use at least 40 hours of paid sick time in a year. 

But larger businesses must allow up to 72 hours of accrued paid leave in a year. 

If an employer provides paid sick time at the beginning of the year instead based on accrual, they would not have to keep track.

The bill would add meetings at a school or place of care for health purposes as a permissible use of leave. It also will not require employers to search for or secure a replacement worker if they are using sick time.