Nik Rajkovic / news@whim.com

The Michigan Senate approved a bill late Thursday night to increase the state's minimum wage and preserve tipped wage credit.

Senate Bill 8 passed with a 20-12 vote. It's now headed to the Republican-led House.

If signed into law, the bill would raise the minimum wage to $15 an hour by 2027, an increase that would have previously not taken full effect until 2028.

It would also preserve the tipped wage credit, which would remain at 38% for the rest of 2025 then gradually increase and cap at 50% over six years.

The vote comes months after a Michigan Supreme Court decision to raise the state's minimum wage laws, a decision that many in the service industry have criticized.

"This bipartisan legislation is a result of the overwhelming advocacy from tipped workers who have spoken loudly and been in and out of the Capitol asking for our help. We were able to honor their voices while accelerating the minimum wage even faster than the original proposal,” Senate Majority Leader Winnie Brinks (D-Grand Rapids) said.

“Over the past several months as we met with hundreds of stakeholders, it became clear that there was no perfect solution that would satisfy all parties. But the core of our mission is to make sure Michiganders get a meaningful raise, and we made major strides in that direction tonight.”