West Central Michigan News

State Representative Joseph Fox has expressed approval for the progress of House Bills 4001 and 4002, which aim to support restaurant workers and small business owners in Michigan. The House Select Committee on Protecting Michigan Employees and Small Businesses gave unanimous approval to these bills on Thursday. These legislative measures seek to maintain the tipped wage and amend earned sick time regulations before new mandates take effect next month.

During a committee hearing, Fox listened to testimonials from various stakeholders, including single mothers working as restaurant servers. He emphasized the financial challenges they face if these bills do not become law by February 21. "I listened to hours of testimonials from small business owners and tipped workers from all around our state during the hearing on Tuesday, but the most impactful were the single moms working as restaurant servers to provide for their kids," said Fox.

The proposed legislation responds to a Michigan Supreme Court decision from last summer. It aims to preserve the tipped wage at 38% of the minimum wage, which will gradually increase over four years. Additionally, it proposes scrapping a universal earned sick leave policy in favor of defining an employer as an entity with 50 or more employees. This change would exempt smaller businesses from court-imposed sick leave mandates while providing clarity for larger businesses required to offer paid sick time.

Under the previous Supreme Court ruling set to take effect on February 21, small businesses would need to maintain extensive records of paid sick leave for all employees, including seasonal and part-time workers. Service industry experts estimate that such requirements could lead one in five restaurants in Michigan to close due to increased costs.

Fox noted opposition during the committee hearing primarily came from labor unions and out-of-state groups. "It is noteworthy that during the committee hearing, the folks that testified against the bills work for powerful labor unions and out-of-state left-wing groups," he stated.

The bills will now proceed to the full Republican-majority House of Representatives for consideration.