Michigan Legislature Approves Bills on Paid Leave, Tipped Wages
February 21, 2025

Nik Rajkovic / news@whmi.com
Both State Rep. Ann Bollin, R-Brighton Twp, and Rep. Jason Woolford, R-Howell, are praising bipartisan bills that maintain Michigan’s tip credit, "implement fair earned sick time policies, and provide stability for small businesses and the workers they employ."
House Bill 4002 passed the Michigan Senate about an hour ahead of a midnight deadline when changes ordered by the Michigan Supreme Court were scheduled to take effect.
The legislation amends Michigan’s Earned Sick Time Act to safeguard businesses from what Bollin's office calls baseless lawsuits, and protects employers from no-call, no-show absences that could leave workplaces short-staffed, particularly important in emergency services and other critical industries.
"It’s unfortunate that negotiations went down to the wire, but I’m proud we put politics aside to get this done," Bollin said. "This bipartisan solution protects the livelihood of thousands of Michigan workers, respects the realities of running a small business, and keeps our economy strong."
Woolford also expressed his frustrations with Senate Democrats for delaying these crucial legislative fixes until the last possible moment and forcing through a watered-down version instead of a stronger solution.
"My House Republican colleagues and I made this issue our main priority to begin the term, introducing legislation to protect small businesses before we did anything else," Woolford said. "While the bills we passed this evening ensure Michigan’s small business community avoids disaster, we have a far-diminished restoration of reasonable wage and paid leave requirements because of the Senate Democrats."
Local 48th District Democrat Jennifer Conlin also voted in favor of the legislation.
Senate Bill 8 ensures tipped workers continue earning their base wage plus tips, keeping the tip credit at 38% through 2025 while implementing gradual increases, ultimately capping at 50% of the minimum wage by 2031.
The bill also strengthens penalties for employers who fail to properly compensate their employees.
"This is a huge win for Michigan’s small businesses and the hardworking men and women they employ," Bollin said. "Servers and bartenders overwhelmingly told us they want to keep the tip credit system in place, and we listened. We also crafted a practical approach to sick time policies - one that allows employees to take time off when they need it while ensuring our small businesses and critical services can continue to operate."
The bills now move to the governor’s desk for final approval.