Safeguards for small businesses still needed before Friday

State Rep. John Roth on Wednesday voted in support of bipartisan legislation, Senate Bill (SB) 8, to protect the livelihoods of tipped workers by safeguarding the tip credit while allowing for reasonable increases in compensation rates. Roth spearheaded the House version of the plan, aspects of which were written into SB 8 during the negotiation process.

“I’m glad that the Senate agreed with us and came across the aisle to protect tipped workers across Michigan,” said Roth, R-Interlochen. “This plan ensures workers get a raise while allowing them to keep their hard-earned tips. I am disappointed that we’re this close to the February 21 deadline and are just now getting solutions across the finish line. Tipped workers and small business owners shouldn’t have had to wait this long. Don’t get me wrong, today was a win. But it will all be for nothing if the Senate Democrats don’t come to their senses and accept our common-sense proposal on sick time rules.”

SB 8 maintains the tip credit at 38% through 2025 while implementing annual increases, eventually capping at 50% of the minimum wage in 2031. The plan also heightens the penalties for employers who fail to fairly compensate their staff.

SB 8, which now heads to the governor’s desk, is legislatively tied to a bill to address the paid sick time issue, meaning both would have to be signed into law for either to take effect. Sick-time negotiations between House and Senate leadership are still ongoing.

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