In Economic Security, Health, Jobs and Economy, News Releases

For Immediate Release
February 14, 2025

Contact:
Laura Millard Ross
lauramr@mlpp.org
(517) 281-1084

League opposes Senate bill that would maintain subminimum wages for tipped workers in Michigan

Senate Bill 8 undermines the tipped wage policy set to take place on
Feb. 21 under a Michigan Supreme Court ruling 

LANSING—The Michigan League for Public Policy opposes Senate Bill (SB) 8, which passed out of the Michigan Senate last night. While SB 8 would accelerate Michigan’s minimum wage, it would undermine tipped workers by significantly weakening an existing, Michigan Supreme Court-ordered tipped wage policy that is slated to take effect next week. The court-ordered policy will increase tipped wages over the next five years until it reaches 100% of the minimum wage in 2030, while SB 8 would significantly slow tipped wage increases over the next several years and keep tipped wages at 50% of the minimum wage beginning in 2031. 

The League also continues to oppose any bill that seeks to weaken the court-ordered earned paid sick time protections that are also scheduled to take effect next week. The statement below can be attributed to League President and CEO Monique Stanton. 

“The League continues to oppose any of the Legislature’s attempts to water down the scheduled earned paid sick time and wage protections that workers have been waiting six long years to receive. The House and Senate have voted to undermine the hard-fought rights that Michigan workers deserve — rights those workers were expecting to take effect in just one week.

“While Senate Bill 8 would benefit many minimum-wage earners in our state by accelerating Michigan’s minimum wage increases, it will simultaneously lock tipped wage earners into lower wages into perpetuity.

“The continuation of a tipped minimum wage is fundamentally flawed and detrimental to workers, especially women, who make up the vast majority — 74.3% — of our state’s tipped wage workforce. Business and industry lobbying groups argue that eliminating the tipped minimum wage would harm businesses, particularly restaurants, or that it would end the practice of tipping entirely. However, neither of these claims hold up to scrutiny. Research consistently shows that raising minimum wages has no meaningful negative impact on employment or business growth—including in the restaurant industry. And tipping remains commonplace in states that have already eliminated the tipped minimum wage. The difference in those states is that workers aren’t heavily relying on a steady customer base and the generosity of patrons in order to make ends meet. Instead, their wage itself provides them with greater financial stability and reduces vulnerability to wage theft and employer exploitation.

Despite resistance from business lobbying groups and some lawmakers, Michigan should stay on the court-ordered path to eliminating the tipped minimum wage and the exploitation it perpetuates. Instead of prolonging the outdated and unjust system of tipped wages, we ask that our state lawmakers prioritize policies that provide all workers with a fair and stable income.

“We also urge our state lawmakers to stay on the court-ordered path for the earned paid sick time protections scheduled to take effect next week. Without these protections, many Michigan workers will have to continue to decide between going without pay or going to work sick, both of which are unsafe choices that can have grave consequences for not just their economic security, but for public health. Continuing to force sick workers into the workplace not only hinders their ability to take care of themselves and get well, but also contributes to the spread of illness among their co-workers and in public spaces.

Michigan’s workforce deserves policies that strengthen, not diminish, their rights and protections. After a six-year legal battle that should never have had to happen in the first place, they do not deserve to have what has been promised to them stripped away yet again.”

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The Michigan League for Public Policy, www.mlpp.org, is a nonprofit policy institute focused on opportunity for all. Its mission is to advance economic security, racial equity, health and well-being for all people in Michigan through policy change. It is the only state-level organization that addresses poverty in a comprehensive way.