State Representative Graham Filler proposes new legislation to protect local businesses from Michigan minimum wage hikes and sick leave mandates set to take effect in 2025.
Bipartisan Bills Aim to Temper Supreme Court-Mandated Wage Increases
State Rep. Graham Filler, R-Duplain Township, is spearheading a bipartisan initiative to shield Michigan’s small businesses and restaurants from a looming financial crisis caused by a recent Michigan Supreme Court ruling. The court decision, set to take effect in February 2025, mandates a significant increase in the state’s minimum wage, moving it from $10.33 to $12.48 per hour, with further annual adjustments tied to inflation. Additionally, the tipped wage will gradually rise until it matches the standard minimum wage by 2029, potentially destabilizing industries that rely heavily on this pay structure.
Filler, alongside Rep. Nate Shannon, D-Sterling Heights, introduced House Bills 6056 and 6057, aimed at moderating the impact of these sweeping changes. HB 6056 proposes a more gradual increase of the minimum wage, ultimately reaching $15 by 2029 rather than adhering to the court’s accelerated timeline. The legislation also seeks to preserve the tipped wage system, allowing tipped workers to earn 38% of the full minimum wage provided their total earnings, including tips, meet the standard rate.
“This is the number one issue facing Michigan right now,” Filler stated. “Immediate action is necessary to protect small businesses, prevent closures, and maintain jobs across the state while still raising wages for workers in a balanced way.”
Industry-Wide Challenges Prompt Legislative Action
The impending wage hikes and related mandates on paid sick leave have raised alarm across Michigan’s business community, particularly within the restaurant and service industries. Employers warn that without modifications, these regulations could lead to reduced staff hours, layoffs, or even permanent closures.
To address these concerns, House Bill 6057 focuses on modifying paid sick leave requirements. The Supreme Court’s ruling significantly expands these mandates, presenting a heavy burden for small businesses. The proposed legislation seeks to alleviate administrative costs and complexity, ensuring protections for employees without undermining business stability.
Filler highlighted the urgency of passing these bills before the Legislature’s lame-duck session ends. He emphasized his commitment to finding bipartisan solutions that balance business needs with fair treatment for Michigan’s workforce. “These changes need to be fair, balanced, and thought through,” Filler said. “We can achieve a compromise that benefits businesses and hardworking Michiganders.”
Local Businesses Rally Behind Bipartisan Efforts
Business owners across the state have expressed strong support for Filler’s efforts. Many see the proposed changes as necessary to avoid a wave of closures and financial distress, particularly within industries most dependent on tipped wages. Some labor advocates, however, have pushed back, arguing that any delays in implementing wage increases compromise workers’ rights to fair pay and benefits.
House Bills 6056 and 6057 have been referred to the Regulatory Reform Committee for further review. The outcome of these deliberations may shape the economic landscape for Michigan businesses and workers for years to come.
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