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Michigan Workers to See Minimum Wage and Sick Leave Increase

Workers in Michigan rejoice at the news of minimum wage and sick leave changes.

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News Summary

Michigan has passed significant legislation raising the minimum wage and expanding paid sick leave. The minimum wage will rise to $12.48/hour in 2025, eventually reaching $15/hour by 2027. Additionally, paid sick leave will increase from 40 to 72 hours per year. This move follows a Supreme Court ruling deeming previous changes unconstitutional and aims to balance worker rights with business interests.

Big Changes for Michigan Workers: Minimum Wage and Sick Leave on the Rise!

Michigan has been buzzing with excitement following a major decision from the state Legislature! On February 20, 2025, the Michigan House took a significant step forward by passing amended legislation on minimum wage and paid sick leave. With a hearty vote of 69-40, this bill, known as Senate Bill 8, is now making its way to the Governor after a thumbs up from the state Senate.

New Minimum Wage Rolling In

So, what does this mean for the everyday worker? Well, for starters, the minimum wage is set to see a bump to $12.48 per hour effective from February 21, 2025. This is just the beginning, as there’s a plan to gradually raise the wage to $15 per hour by 2027. That’s great news for those struggling to make ends meet!

But wait, it gets better! For our hardworking tipped employees, the starting wage will be set at 38% of the standard minimum wage. This figure will incrementally go up to 50% by the year 2031. It’s vital for tipped workers to benefit from this change, but businesses who don’t comply with this new tipped wage could face a hefty fine of $2,500!

A Response to Legal Changes

The driving force behind this revised legislation stems from a ruling by the Michigan Supreme Court in 2024. This ruling restored changes to the previous minimum wage and sick leave laws, revealing that earlier legislative amendments were, in fact, unconstitutional. Originally, there was an ambitious plan to raise the minimum wage to $14.97 by 2028, complete with annual inflation adjustments for workers. The proposal for tipped wages aimed for a complete alignment to 100% of the standard minimum wage by 2030.

Sick Leave Gets a Significant Boost

And let’s not forget the sick leave aspect! Another critical piece of this legislation is House Bill 4002, which works hand-in-hand with the minimum wage measures. Starting February 21, 2025, employees will enjoy an increase in paid sick leave from 40 hours to an impressive 72 hours per year. This will ensure that workers can take necessary time off without losing income, a move that is truly unprecedented in the U.S. for businesses with over ten employees!

Previously, businesses with fewer than 50 employees were exempt from this rule, but those days are gone! Now, all employees are entitled to a fair share of paid sick time. However, there’s a small concession for tiny businesses with 10 or fewer employees, allowing them a delayed start for accrual until October 1, 2025.

Balancing Interests

This legislation is a result of meaningful negotiation between GOP and Democratic leaders, who aimed to strike a balance between protecting workers and keeping business interests in mind. The revised sick leave policy also eliminates previous provisions allowing civil suits under the sick leave law, and it won’t apply to temporary seasonal workers or those under the age of 18.

Moreover, newly established small businesses will have a grace period of three years before they are required to offer paid sick time. The Michigan Restaurant & Lodging Association welcomed these adjustments, appreciating the fine-tuning made during negotiations.

Looking Ahead

However, the journey isn’t entirely settled just yet. The organization One Fair Wage has declared intentions to seek a referendum if the Governor signs this revised minimum wage legislation into law. With all these changes, the discussion around wages and worker rights isn’t cooling off anytime soon.

Overall, there’s a palpable excitement in the air for what these recent developments mean for workers across Michigan. As this legislation makes its way to the Governor’s desk, the future looks a little brighter for workers who have long awaited a fairer wage and better sick leave protections.