By 2030 the Michigan minimum wage will be raised to $12 under the changes to the citizen-initiated laws approved by the Senate Government Operations Committee.
Last September, the legislature adopted the measures needed instead of just letting it go to ballot. By doing this they can come back and amend them with a simple majority vote instead of the typical two-thirds vote that it would have taken to make changes passed at the ballot box.
The new minimum wage law from the initiative will not be in effect until March of 2019. The law will slowly bring the minimum wage of tipped workers like waiters and bartenders up to the same level as regular minimum wage and then it will raise the minimum wage to $12 per hour by 2022.
But under the bill approved by the Senate Government Operations Committee, the minimum wage would raise slower than originally planned, hitting $12 per hour by 2030 instead of 2022, and then stopping at that point instead of indexing to inflation afterwards.
The latest rewrite plans to keep the wage of tipped workers lower than minimum wage instead of bringing the tipped workers up to the same wage level as other minimum wage workers.
Sen. Dave Hildenbrand, R-Lowell the bill sponsor said that he had heard from tipped employees that this would damage their income potential. And this is the reason why he proposed that tipped employees should be kept at a lower minimum wage.
Repealing the tip credit as the ballot proposal would do “fundamentally goes against what tipped employees want,” said Robert O’Meara of the Michigan Restaurant Association.
One Fair Wage, the group that started the ballot proposal initiative, share the same view as Sen. Dave Hildenbrand. One Fair Wage is a group that is fighting for the raising of subminimum tipped wage of the restaurant industry.
There is also a new law for paid sick time, where Michigan workers will be able to have one hour of paid sick leave for every 30 hours worked, capping out at 72 hours per year for larger businesses and 40 hours per year for small businesses, both of which must also allow unpaid leave. And both business sizes could also choose to offer longer paid sick leave.
With the latest update of the Senate Bill 1175 that’s been changed and approved by the Senate Government Operations Committee.
The proposal will let workers earn 1 hour of paid sick time for every 40 hours, instead of 30 hours. And an employer regardless of size can choose to limit paid sick leave to 36 hours per year instead of the higher limits issued under current law.
But that’s only for those who qualify — The bill excludes workers that are exempt from federal overtime requirements, airline and railroad employees, certain temporary employees, union members working in a private sector, government employees, workers whose primary work location is outside of Michigan, and young workers who are earning a youth training wage. This also changes which businesses the paid sick time law applies to. Businesses that have fewer than 50 employees do not have to provide a paid sick leave.
The bills will next head over to the full Senate, where they would need approval by the full Senate, full House and a signature from Gov. Rick Snyder to become law.
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