Michigan Legislature passes minimum wage increase, modifies sick leave

The Michigan Senate passed legislation to amend the Improved Workforce Opportunity Wage Act of 2018, which was set to take effect on February 20, 2025. The new bills, House Bill 4002 and Senate Bill 8, aim to modify minimum wage increases and sick leave requirements, limiting paid leave expansion to companies with 50 or more employees and capping the tipped worker minimum wage at 50% of the state minimum wage by 2031. Senate Bill 8 establishes a phased increase to a $15 minimum wage by 2027, while reducing the tipped wage increase to start at 38% of the minimum wage. The original act sought to raise Michigan's minimum wage to $14.97 by 2028, but these amendments are seen as a compromise to balance business interests and worker rights. Lawmakers emphasized the importance of the changes to support both employees and employers amidst ongoing debates over wage legislation. The bills await approval from Governor Whitmer before implementation.