News Story

Michigan Senate OKs paid sick leave compromise

Proposal would raise minimum wage to $15 by 2027

The Michigan Senate approved a political compromise last week to tweak paid sick leave and tipped wage rules that will change on Friday if lawmakers do not act.

Eight Democratic lawmakers joined Republicans for a 20-12 vote on Senate Bill 8, which would raise the minimum wage to $15 an hour by 2027 — two years earlier than the Republican plan offered in House Bill 4001 and 4002.

In return, the compromise would drop the tipped credit until it reaches 60% of the minimum hourly wage by 2035.

House Speaker Matt Hall, R-Richland Township, welcomed the bill’s passage.

Hall called on Senate Democratic lawmakers to approve an updated plan before Feb. 21.

“The deal is on the table, and we can get this done now,” Hall said in a news release. “No more stalling, no more delaying — let’s protect Michigan workers and solve this crisis before” before the deadline.

On Feb. 12, Gov. Gretchen Whitmer suggested delaying the enactment of the new paid sick leave rules, according to Bridge Michigan.

One House Democrat argued that Whitmer should let the new paid sick leave law go into effect as scheduled.

The Republican House in 2018 undermined the will of the voters, said Rep. Dylan Wegela, D-Garden City, in a news release. Michigan workers have been waiting for a raise and paid sick leave for six years, he continued.

“I am disappointed to see our governor advocated for a delay in raising the minimum wage, phasing out the subminimum wage, and the start of paid sick leave for all workers in Michigan,” Wegela said. ”Instead, the governor should be standing with the Michigan Supreme Court and the working class, by threatening to veto any changes to the One Fair Wage legislation.”

The proposal to raise the minimum wage received hundreds of thousands of signatures, Senate Majority Leader Winnie Brinks told Michigan Capitol Confidential in an email last week. The Grand Rapids Democrat opposed the Republicans’ first proposal in January, which, she said, took sick leave away from a million workers.

“I believe we can achieve a balance that ensures that workers have strong rights, employers are able to run their businesses, and that the spirit of the initiative petition — which received hundreds of thousands of signatures — is upheld.”

Save MI Tips spokesman John Selleck welcomed the progress. The group represents restaurant workers who oppose phasing out the tipped credit.

”There is more work to be done, but we tip our hats to legislators who came together to make this a reality," Selleck said in a press release. ”Now let's get this done!”

Senate Bill 8 would increase state and local revenue by an unknown and likely minimal amount beginning in fiscal year 2025-26, according to the Senate Fiscal Agency. The amount would depend on the number of affected employees and their working hours, it said.

The Republican-led House passed its paid sick leave fix last month.

It’s unclear whether Whitmer will sign changes into law. Each chamber has passed legislation, but the House, Senate and governor must agree on any changes.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.