Final talks underway on setting Michigan's new minimum wage and tipped wage standards
Sweeping changes to Michigan's standards on minimum wage and sick leave policies are set to take effect in nine days and it has business owners, service workers and lawmakers at odds with one another.
In 2018 lawmakers in the Republican-led legislature implemented changes to raise minimum wage to $15, phase out tipped wage credits and set mandatory sick leave policies that were being sought after by a ballot petition at the time. But after lawmakers adopted the changes, they amended them following the election, in a maneuver the Michigan Supreme Court in 2024 said was unconstitutional, ordering the changes in the petition to be put in effect on Feb. 21 this year.
Servers and restaurant-owners in Michigan have railed for and against the changes set to take effect in a few days and both the state Senate and House have introduced bills to amend the impending changes.
State Senators heard testimony in the Senate Regulatory Affairs Committee on Wednesday from service industry members on the Senate's version to change minimum wage and preserve tipped wages.
The then-Republican led legislature violated the people of Michigan's constitutional right to petition in 2018 to set rules on sick leave and minimum wage, Senate Regulatory Affairs Committee Chair Sen. Jeremy Moss (D-Southfield) said during a committee meeting Wednesday.
'…the impact of that controversial decision making has pitted employer against employee, worker against worker and Michigander against Michigander. Today, we have to rise above that,' Moss said. 'I will tell you that we will have people here today from the same industry, owners and servers alike, on opposite sides of this issue.'
Under the Supreme Court ruling, which lawmakers have the opportunity to preempt, minimum wage is set to rise from $10.56 to $15 in 2028 and tipped wages will increase annually to equalize Michigan's minimum wage by 2031.
Many restaurant owners and servers have told lawmakers that they like the current system that allows businesses to pay servers a tipped wage, currently 38% of minimum wage, saying that with tips, servers make much more than they would if they were minimum wage employees.
At the same time, some stakeholders say raising the minimum wage for all and eliminating tipped wages would work to lift up all workers.
The legislation for consideration by the committee, Senate Bill 8 would speed up the timeline to a $15 minimum wage by 2027 and not phase out tipped wages completely, raising tipped wage slowly to 60% of minimum wage over the next decade.
The restaurant industry is still licking its wounds from economic losses it suffered during the COVID-19 pandemic, President of the Michigan Restaurant & Lodging Association Justin Winslow said. Having to increase wages and then increase menu prices to compensate could be just the thing that causes small businesses to have to shutter their doors.
'You will see job loss. You will see some of the smaller, some of the more on the edge restaurants right now move towards closure,' Winslow said. '40% of the industry in Michigan right now is not making a profit. There's a staggering number. That means two out of five restaurants are on the edge of closure, and that's not sustainable. This is the kind of policy that would push them over the edge.'
Swaths of servers have come to the Michigan Capitol Building to plead with lawmakers, saying that if tipped wages go away, customers will stop tipping. Loss of tips is not a reality, people will still tip for great service, President of One Fair Wage Saru Jayaraman said.
'There is the fear mongering that the restaurant association engages in in every state… where workers try to get a raise, they say tips will go away. They say restaurants will shut down. They do it in every single state. They have captive audience meetings with their workers and tell them 'your tips are going to go',' Jayaraman said. 'We have good news for everybody in the room, for all of you, and for the state of Michigan, the seven states that have already done this and the many more that have followed in the last several years since the pandemic, are doing great.'
There are a lot of concerns on what iteration of a new policy is the right one and how each policy will be implemented, but it's important to note that there is opportunity for bipartisanship that both works for business owners and employees, Stacey LaRouche, press secretary for Governor Gretchen Whitmer said on behalf of the governor in a statement.
'Governor Whitmer has long opposed the unconstitutional tactic Republicans used to undercut working families and discourage companies from providing sick leave to employees,' LaRouche said. 'The administration has heard concerns about implementation of the new law, and the governor has made it clear that she is open to a bipartisan deal that protects servers and wait staff, while also providing certainty to small businesses and helping Michigan remain competitive.'
Furthermore, LaRouche said the governor called on leadership of the House and Senate to work towards a bipartisan deal and come to an agreement this week. If they can not come to an agreement, Whitmer is calling for the legislature to pass a short-term extension putting off the Supreme Court rules until July 1 to allow more time for negotiations.
Before lawmakers adjourned for the day Wednesday, the committee cleared the Senate's sick leave policy out of committee without the support of any of the four Republican members and with Sen. Sylvia Santana (D-Detroit) passing on the vote.
The Senate's plan, Senate Bill 15, would require businesses with more than 25 employees to offer employees 72 hours of paid sick time. And small businesses would have to permit employees to earn 40 hours of paid sick time, as well as 32 hours of unpaid leave.
The Regulatory Affairs Committee will reconvene Thursday afternoon to consider the future of the minimum and tipped wage standards under Senate Bill 8.
SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Boston Globe
9 minutes ago
- Boston Globe
Vice President JD Vance is on the road again to sell the Republicans' big new tax law
In West Pittston, Pennsylvania, Vance told attendees at an industrial machine shop that they should be able to keep more of their pay in their pockets, highlighting the law's new tax deductions on overtime. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up Vance also discussed a new children's savings program called Trump Accounts and how the new law promotes energy extraction, while decrying Democrats for opposing the bill that keeps the current tax rates, which would have otherwise expired later this year. Advertisement The legislation cleared the GOP-controlled Congress by the narrowest of margins, with Vance breaking a tie vote in the Senate for the package that also sets aside hundreds of billions of dollars for Trump's immigration agenda while slashing Medicaid and food stamps. The vice president is also stepping up his public relations blitz on the bill as the White House tries to deflect attention away from the growing controversy over Jeffrey Epstein. Advertisement The disgraced financier killed himself, authorities say, in a New York jail cell in 2019 as he awaited trial on sex trafficking charges. Trump and his top allies stoked conspiracy theories about Epstein's death before Trump returned to the White House and are now reckoning with the consequences of a Justice Department announcement earlier this month that Epstein did indeed die by suicide and that no further documents about the case would be released. Questions about the case continued to dog Trump in Scotland, where he on Sunday announced a framework trade deal with the European Union. Asked about the timing of the trade announcement and the Epstein case and whether it was correlated, Trump responded: 'You got to be kidding with that.' 'No, had nothing to do with it,' Trump told the reporter. 'Only you would think that.' The White House sees the new law as a clear political boon, sending Vance to promote it in swing congressional districts that will determine whether Republicans retain their House majority next year. The northeastern Pennsylvania stop is in the district represented by Republican Rep. Rob Bresnahan, a first-term lawmaker who knocked off a six-time Democratic incumbent last fall. On Monday, Vance will be in the district of Democratic Rep. Emilia Sykes, who is a top target for the National Republican Congressional Committee this cycle. Polls before the bill's passage showed that it largely remained unpopular, although the public approves of some individual provisions such as increasing the child tax credit and allowing workers to deduct more of their tips on taxes.


Business of Fashion
28 minutes ago
- Business of Fashion
What Fashion and Beauty Professionals Want From Employers
In the five years since the start of the Covid-19 pandemic, the fashion and beauty industries have navigated significant transformation amid ongoing geopolitical unrest, a turbulent economic climate and the mounting climate crisis. Such change is ushering in a workplace reckoning, with employees across the world reassessing where their professional priorities lie. Needs have changed with the global introduction of remote and hybrid working, a demand for transparency and values-based company missions and goals. To examine these shifts, BoF Careers conducted a survey of our global community from May to June 2025, to better understand what talent is looking for as well as which companies they would most like to work for — and why. More than 1000 members from the global BoF community in 74 countries and territories, representing a variety of seniority levels and age groups, shared their needs and expectations in 2025. The survey finds today's workforce seeks fair compensation and career progression opportunities, greater transparency and ethical leadership, a strong company culture and flexibility over a prestigious name or social capital. The workforce is increasingly holding current and prospective employers accountable for meeting their professional needs — and loyalty is no longer guaranteed. Some 45 percent of working professionals surveyed say they are actively looking for a new job outside of their current employer, and only 15 percent say they are satisfied with their current role. This mirrors broader workforce sentiments from the 2025 State of the Global Workplace report by workplace consulting and research firm Gallup, which found 50 percent of currently employed workers say they are watching for or actively seeking a new job. Moreover, there are now up to five generations in the workplace, with Gen-Z — those born roughly between 1997 and 2012 — often most closely associated with ushering in new expectations and workplace demands. The report deep dives into each cohort's needs today, providing key generational insights, while dispelling stereotypes around the cohorts shaping the workforce today. We combine proprietary survey data with insights from global HR leaders at Prada Group, Adidas, Patagonia and L'Oréal Groupe, as well as expertise from strategists, writers and consultants specialising in leadership and HR. This report is split into 3 sections: Chapter 1: The Macro-Context Explores the broader trends impacting the workplace and driving change in employee behaviour, needs and expectations. Key Insights: Globally, job dissatisfaction is rife — 45 percent of working professionals surveyed say they are actively looking for a new job outside of their current employer. The new digital era is having a profound impact on global workplace operations and the psychology of today's workforce. Constant changes in business priorities amid rapidly shifting macroeconomics and socio-politics leaves the wider workforce uncertain of strategic goals and is leading to employees feeling disengaged. Chapter 2: Talent Expectations Presents the qualitative and quantitative findings from our exclusive survey, offering a detailed view of current employee expectations. Key Insights: Brand prestige captures the attention of prospective talent, but it is not enough to convert candidates further down the talent acquisition funnel — pay and company values are the most important criteria when assessing an employer today Those aged 20-29 — from the Gen-Z cohort — typically register more positive sentiments around pay compared to older professionals. The most important benefit, according to 65 percent of respondents, is 'flexible working policies.' Some 52 percent prefer a hybrid working schedule, with 2 or 3 days in the office. Seventy percent of respondents say transparency is the most important component of an employer's approach to career progression. Chapter 3: Employer Strategies Provides actionable advice for employers and HR teams on how to meet those expectations today to drive recruitment, improve retention and boost productivity. Key Insights: Consistent company values provide clear reasons behind business decisions, setting a stronger guidance for the workforce. Segment employees by mindset, not generation, when appealing to a workplace that consists of five generations with nuanced, complex needs. Employees want their workplaces to engage in critical conversations and community causes. Workplaces should carefully consider what their company can meaningfully commit to, and engage with these topics in an authentic way. Mission statements and inclusive hiring language in job descriptions are not sufficient in convincing talent of a company's commitment to its community. Individuals need to see it to believe it. BoF Careers is our hiring and employer branding platform. We partner with fashion and beauty companies to help them hire and showcase their unique employer brand to our community of top fashion, luxury and beauty professionals. Get in touch with Thesia Yomalita to find out how BoF Careers can support your business.


Los Angeles Times
2 hours ago
- Los Angeles Times
Sudan paramilitaries announce a parallel government, deepening the country's crisis
CAIRO — A notorious paramilitary group and its allies in Sudan have formed a parallel government in areas under the group's control, which are mainly in the western region of Darfur where allegations of war crimes and crimes against humanity are being investigated. The move, which was announced Saturday, is likely to deepen the crisis in Sudan, which plunged into chaos when tensions between the country's military and the paramilitary Rapid Support Forces, or RSF, exploded into fighting in 2023 in the capital, Khartoum, and elsewhere in the country. The RSF-led Tasis Alliance appointed Gen. Mohammed Hamdan Dagalo, the commander of the paramilitary group, as head of the sovereign council in the rival administration. The 15-member council serves as head of the state, it declared. The RSF grew out of the notorious janjaweed militias, mobilized two decades ago by then-President Omar Hassan Ahmed Bashir against populations that identify as Central or East African in Darfur. The janjaweed were accused of mass killings, rapes and other atrocities. In the current war, the RSF too has been accused of numerous atrocities. The Biden administration imposed sanctions on Dagalo, saying the RSF and its proxies were committing genocide, a charge the group has denied. Alliance spokesman Alaa al-Din Naqd announced the new administration in a video statement from the Darfur city of Nyala, which is controlled by the RSF and its allied janjaweed. Mohammed Hassan Taishi, a civilian politician who was a member of a military-civilian sovereign council that ruled Sudan after the 2019 overthrow of Bashir, was named prime minister in the RSF-controlled government. Rebel leader Abdelaziz al-Hilu, who commands the Sudan People's Liberation Movement-North, or SPLM-N, which is active in the southern Kodrofan region, was appointed as Dagalo's deputy in the council. The SPLM-N is a breakaway faction of the SPLM, the ruling party of neighboring South Sudan. The announcement came five months after the RSF and its allies signed a charter in February in Kenya's capital, Nairobi, with the aim of establishing a parallel government in RSF-controlled areas. At the time, many countries, including the United States, rejected the RSF efforts and condemned the signing at the Nairobi conference of what the paramilitary group and its allies called a 'transitional constitution.' The Foreign Ministry of Sudan's internationally recognized government in Khartoum condemned the announcement of a parallel government. It issued a statement calling it a 'fake government' and urged the international community to not engage with the RSF-led administration. The RSF-led move was likely to deepen the division in Sudan. Yasir Arman, a rebel leader, said the move is likely to prolong the conflict and divide Sudan between two rival administrations — similar to neighboring Libya. Magdy writes for the Associated Press.