Rep. Johnsen: Tipped Wage, Sick Leave Reforms Pass House, Advance to Senate

We received the following press release from State Representative Gina Johnsen.

State Rep. Gina Johnsen (R-Portland) voted on Thursday in favor of House Bills 4001 and 4002, a legislative package designed to safeguard the interests of tipped employees, small business owners, and local job providers facing uncertainty from a pending Michigan Supreme Court mandate. The measures passed the state House and now move to the Senate for further consideration.

Under the current court ruling—slated to take effect on Feb. 21—Michigan’s tip credit would be phased out, and additional sick leave and wage requirements would be imposed. Opponents warn that, without legislative action, employers could be forced to cut staff, reduce employee hours, or even shut down.

House Bills 4001 and 4002 preserve the tip credit, introduce a balanced approach to wages, and maintain a manageable sick leave policy, ensuring small businesses are not hampered by unworkable staffing demands.

“These proposals help restore balance for both workers and local employers,” Johnsen said. “By allowing employees to keep their tip-based income and preventing overly strict mandates on small businesses, we’re ensuring Michigan’s service industry remains viable and continues to provide jobs for people across our state.”

HB 4001 ensures the tip credit is maintained at 38% – protecting the livelihoods of servers, bartenders, and other tipped workers, many of whom make $30 to $40 dollars currently. The bill also guards small businesses from impossible new expenses that were expected should the credit have been phased out.

House Bill 4002 allows workers and small businesses to retain the paid leave options that work for them. The plan also clarifies the looming rules, viewed by many as a one-size-fits-all mandate that is unrealistic and so confusing even lawyers can’t understand.

If approved by the Senate and signed into law, the plan would take effect before the Feb. 21 deadline.

Editor’s Note: For more information about the Supreme Court ruling referenced in this press release, you can read this overview from law firm Ogletree Deakins.

1 Comment

  1. After you read Johnsen’s biased press release (press releases are self-advertising, after all), read this important context. “…These bills seek to reduce minimum wage increases over the next several years, resulting in a $1,000 to $2,400 annual pay cut for Michigan workers, while also maintaining subminimum tipped wages and exempting 96% of Michigan businesses — those with less than 50 employees — from providing paid sick time.
    HBs 4001 and 4002 … come at a time when the majority of Michiganders, including both Democrats and Republicans, have said they support the minimum wage and paid sick leave changes set to take effect this February. They also come at a time when our state’s wages continue to lag behind the cost of living and public health continues to be jeopardized by a lack of basic paid sick time coverage for many workers.” https://michiganadvance.com/…/league-opposes-michigan…/

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