State Rep. Greg Markkanen recently voted in support of House Bills 4001 and 4002, which will restore the tip credit and protect small businesses from intrusive paid sick time mandates. The plan was introduced in response to a Michigan Supreme Court decision from last summer that forced unrealistic rules and expenses on small businesses and restaurants. The bills passed the House with overwhelming bipartisan support.

“I represent three quarters of the Upper Peninsula counties that share a border with Wisconsin,” said Markkanen, R-Hancock. “Wisconsin already has an advantage over us in the bar and restaurant industry because the regulations there are so much more friendly. Doing nothing to restore the tip credit will be the kiss of death on service jobs just north of the border. The small businesses and jobs across the entirety of the U.P. won’t last much longer after that.”

Markkanen noted that independent restaurants, smaller operations not supported by larger chains, will feel the brunt of the changes. These operations make up the vast majority of restaurants and the food service industry in the U.P.

HB 4001, passed last Thursday, ensures the tip credit is maintained at 38% – protecting the livelihoods of servers, bartenders, and other tipped workers, many of whom make $30 to $40 dollars currently. The bill also guards small businesses from impossible new expenses that were expected should the credit have been phased out.

HB 4002 allows workers and small businesses to retain the paid leave options that work for them. The plan also clarifies the looming rules, viewed by many as a one-size-fits-all mandate that is unrealistic and so confusing even lawyers can’t understand.

Both bills now move to the Senate for further consideration.

###