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Yahoo
13-06-2025
- Business
- Yahoo
Campaign launches to hold referendum on Michigan's new minimum wage law
The long fight over Michigan's minimum wage just entered a new battle. Advocates for eliminating the lower minimum wage for restaurant servers and other workers who receive customer tips recently announced their campaign to place a referendum on the November 2026 ballot asking voters to repeal the state's new minimum wage law. The law that took effect in February emerged as a legislative compromise that preempted a Michigan Supreme Court order that would have eventually eliminated the lower minimum wage for tipped workers. Compared to the court's order, the new law expedites the timeline for boosting the regular minimum wage earned by workers who don't receive tips. It also gradually increases the tipped minimum wage, but it doesn't eliminate it altogether. The referendum campaign to toss the law seeks to put the minimum wage changes in the Michigan Supreme Court order in place. If organizers collect enough voter signatures, it will set the stage for a temporary suspension of the new minimum wage law before a statewide vote on whether to keep it. That would mean, before the election, tipped workers would see a temporary wage bump while workers earning the regular minimum wage would earn $0.44 less an hour compared with the current law. Saru Jayaraman, president of the organization One Fair Wage supporting the referendum, blasted the Michigan restaurant lobby's description of the referendum campaign as a pay cut and said the group she leads has long pushed for higher minimum wages for all workers. State Sen. Kevin Hertel, D-St. Clair Shores, who introduced the minimum wage legislation Gov. Gretchen Whitmer signed into law earlier this year, said slowing down the timeline for increasing the minimum wage would be bad for workers. He also said the policy to preserve a tipped minimum wage came after workers told him that's what they wanted. "I'll let people make up their own mind," he said on a potential referendum vote. House Minority Leader state Rep. Ranjeev Puri, D-Canton, was the only top legislative leader to vote against Hertel's bill. In a statement, he didn't say whether he would support a referendum to repeal the new minimum wage law, but he said the process is "a critical way for the people of our state to make their voices heard, particularly on issues they feel their government is unresponsive on." In 2018, a campaign to put a proposal on the ballot to raise the minimum wage and eliminate the tipped minimum wage never had a chance to put the issue to a statewide vote. Instead, Republican lawmakers blocked a vote by adopting the proposal before the election. After the election, they watered down the minimum wage changes to keep the lower tipped minimum wage intact. The legal fight that followed ended with a Michigan Supreme Court decision in July 2024 calling GOP lawmakers' "adopt and amend" maneuver illegal and ordering the original minimum wage proposal to take effect starting Feb. 21. The court set a timeline to increase the minimum wage and gradually phase out the lower tipped minimum wage. That prompted lawmakers to scramble to stop the court order eliminating the lower minimum wage from taking effect. Most states have one minimum wage for workers who don't earn tips, and a lower minimum wage for those who do. If customers' tips don't close that gap, the employer pays the difference. The Michigan Supreme Court order phasing out the tipped minimum wage would have made Michigan the first state to eliminate the lower wage for tipped workers in decades. But Gov. Gretchen Whitmer signed Hertel's bill into law the same day the court order was scheduled to take effect. She has celebrated the legislation as evidence lawmakers can work together across the aisle. The restaurant lobby celebrated the new law, but it angered labor advocates, including One Fair Wage, which had floated gathering signatures to pursue a voter referendum during the legislative debate on the minimum wage. A June 11 notice from the Michigan's Bureau of Elections sets out the deadlines for providing public comment on the summary for the referendum petition and the election panel's approval, which typically kicks off the process for gathering signatures to land a spot on the ballot. The referendum campaign immediately garnered pushback from the Michigan Restaurant and Lodging Association, whose President and CEO Justin Winslow said it "would ironically deliver the very pay cuts they claim to oppose" in a statement. Earlier this year, Michigan's new minimum wage law increased the minimum wage from $10.56 to $12.48 an hour, which matches the scheduled increase included in the court's minimum wage order. But starting next year, the new law kicks in a higher increase to the minimum wage than the court's order, with a minimum wage of $13.73 instead of $13.29. In 2027, the law sets the minimum wage at $15 instead of the $14.16 in the court order. Under the law, subsequent increases to the minimum wage are tied to inflation whereas the schedule in the court order set the minimum wage at $14.97 in 2028, before tying future increases to inflation. But the court's order set a higher tipped minimum wage compared to the new law, which caps the tipped minimum wage at 50% of the regular minimum wage starting in 2031. The court order, meanwhile, eliminates the lower tipped minimum wage starting in 2030. Jayaraman said the referendum campaign hopes to submit signatures this year, in time for the state's elections panel to determine enough signatures were collected to suspend the new law and put in place the court-ordered changes before the minimum wage is set to increase to $13.73 next year. The Free Press asked Jayaraman about the possibility of pursuing an initiative that would preserve the expedited timeline for increasing the minimum wage in the current law and eliminating the lower tipped minimum wage instead of a referendum. She suggested the restaurant lobby calling the referendum a pay cut has more resources than the organization she leads and could pitch in to support such an initiative. "And so we are continuing to fight with what we have for the lowest wage workers in Michigan and for all workers in Michigan," she said. That means at least putting the court-ordered changes in place, she said. Jayaraman said One Fair Wage is part of a coalition that's coming together for the referendum, but she said the group's other members would be announced later. Chris White, director of ROC Michigan, a restaurant workers' advocacy group that was a plaintiff in the Michigan Supreme Court case, said in a June 12 phone call that his organization has not yet been approached by the campaign. Michigan AFL-CIO President Ron Bieber spoke at a One Fair Wage news conference at the beginning of the year to express opposition to legislation to diminish the court's minimum wage ruling. Chad Cyrowski, Michigan AFL-CIO communications director, said in a statement June 12: "Every single Michigander deserves a good-paying job with strong workplace protections — and the Michigan AFL-CIO will continue advocating for them. We have not had a chance to review this proposal with our affiliates and have not taken a position on it." Contact Clara Hendrickson: chendrickson@ or 313-296-5743. This article originally appeared on Detroit Free Press: New campaign wants Michigan voters to toss minimum wage law
Yahoo
28-05-2025
- Business
- Yahoo
Senate Democrats hold off on specific road funding plan, cite need for bipartisan agreement
Michigan Senate Majority Leader Winnie Brinks, D-Grand Rapids, left, and state Sen. Kevin Hertel, D-St. Clair Shores, right, discuss Senate Democrats' priorities during a panel in the lobby of the Grand Hotel on Mackinac Island, Mich., during the first night of the Mackinac Policy Conference on May 27, 2025. (Photo by Andrew Roth/Michigan Advance) MACKINAC ISLAND – Senate Democrats avoided detailing a specific road funding plan during the first day of the Mackinac Policy Conference. Senate Majority Leader Winnie Brinks, D-Grand Rapids, said her caucus is 'trying to put the pieces together that will create a plan that could actually get through the Legislature.' 'It's not enough just to have a plan, and it's not enough to even pass things through one chamber – if it's not bipartisan and bicameral, it will not be successful,' Brinks said. While Senate Minority Leader Aric Nesbitt, (R-Porter Township), and Sen. Jim Runestad, (R-White Lake), were scheduled to appear in a similar panel later in the day, Sen. Roger Victory, (R-Hudsonville), represented the Senate Republicans. He proposed a reward system where the state would match local governments' funding for local road repairs. 'Sometimes with state funding, we act like a fire department. We're always out there trying to put fires out,' Victory said. 'I think we need to get ahead of the fires and just do fire prevention.' The GOP-led Michigan House passed a $3.1 billion road funding plan in March, which Democrats criticized as potentially endangering vital services, as well as the state's School Aid Fund. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
19-02-2025
- Business
- Yahoo
Tipped wage rework bill heads back to the Michigan Senate
LANSING, Mich. (WLNS) — A bill to keep the tipped minimum wage in Michigan passed the state House Wednesday—but it will have to go back to the Senate for another vote. , originally introduced by Mich. Sen. Kevin Hertel (D-12), would change the Improved Workforce Opportunity Wage Act. This act will go into effect on Feb. 21 following the ruling in Mothering Justice v. Nessel. After this ruling, the percentage of the standard minimum wage that tipped workers are paid will increase each year, starting at 48 percent of the standard minimum wage on Feb. 21. It will then jump to 60 percent in 2026, and by 10 percent every year after until it matches the minimum hourly rate in 2030. Effective Date Standard Minimum Hourly Wage Tipped Employee Minimum Hourly Wage Minimum Reported Average Hourly Tips 85% hourly wage for minors Feb. 21, 2025 $12.48 $5.99 $6.49 $10.61 Feb. 21, 2026 $13.29 $7.97 $5.32 $11.30 Feb. 21, 2027 $14.16 $9.91 $4.25 $12.04 Feb. 21, 2028 $14.97 $11.98 $2.99 $12.72 Senate Bill 8 would lower these percentages. The new tipped minimum wage would be 38 percent of the standard, which will rise by 2 percent each year through 2031, when it reaches 50 percent of the standard. However, because Senate Bill 8 is tie-barred with , it will now head back to the Senate for additional action. A full copy of the bill as it passed the House can be read below: 2025-SEBH-0008Download Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
14-02-2025
- Business
- Yahoo
Michigan Senate passes bill watering down court-ordered changes to tipped minimum wage
Lawmakers in the Michigan Senate reached a bipartisan agreement Thursday night to water down court-ordered changes to the state's tipped minimum wage, voting on a bill to gradually increase it while preserving lower a wage for workers expected to make the bulk of their earnings through customers' tips. In July, the Michigan Supreme Court ruled Republican lawmakers acted illegally in 2018 when they adopted a proposal to eliminate the state's lower minimum wage for tipped workers to circumvent a statewide vote on the plan, which they later amended to keep the tipped minimum wage at 38% of the standard minimum wage. The court's order to increase the tipped minimum wage until it reaches the standard minimum wage by 2030 takes effect Feb. 21. But state lawmakers appeared to have reached an agreement to stop that phaseout ahead of the deadline. Lawmakers in the Michigan Senate modified Senate Bill 8, introduced by state Sen. Kevin Hertel, D-St. Clair Shores, to raise the tipped minimum wage to 50% of the standard minimum wage instead of 60% as initially proposed. House Speaker Matt Hall, R-Richland Township, put forward the 50% threshold as a compromise after lawmakers in the House voted to keep the tipped minimum wage at 38% of the standard minimum wage. Most Democrats in the Michigan Senate voted against Hertel's bill, which had the support of Senate Majority Leader Winnie Brinks, D-Grand Rapids. Most Republicans in the chamber joined her in voting for the bill. The bill — which still requires a vote in the House to land on Gov. Gretchen Whitmer's desk — would increase the minimum wage to $12.48 from $10.56 on Feb 21. It would increase to $13.73 in 2026 and $15 in 2027 with subsequent increases tied to inflation. The tipped minimum wage would remain at 38% of the standard minimum wage this year, then increase to 40% in 2026, 42% in 2027, 44% in 2028, 46% in 2029, 48% in 2030 and 50% in 2031. Whitmer earlier this week called on lawmakers from both parties to come together to modify the court-ordered changes to the minimum wage. Under the current tipping system in Michigan, customers' tips pay the difference between the lower tipped minimum wage and the standard minimum wage. If that doesn't happen, the employer fills the gap. Michigan's restaurant lobby has predicted business closures and job losses under the court's changes to the tipping system, but proponents of eliminating the tipped minimum wage have accused the restaurant industry of fearmongering. Justin Winslow, President & CEO of the Michigan Restaurant & Lodging Association commended lawmakers in the Michigan Senate for their vote. "Today marks a significant victory for Michigan's hospitality industry," he said in a statement Thursday. Some Democratic lawmakers wanted to see their colleagues leave the court's order untouched, arguing Michigan should join the seven other states in the U.S. without a lower tipped minimum wage. State Rep. Dylan Wegela, D-Garden City, expressed disappointment with Whitmer, saying she should have threatened to veto any attempt to dilute the court's minimum wage order. One Fair Wage — a national group advocating for the elimination of the tipped minimum wage — has previously threatened to gather signatures for a voter referendum on any minimum wage changes that diminish the court ruling on the issue. Auto Industry: Republican senator introduces bill to kill EV subsidy The court's ruling also ordered changes to paid sick leave in Michigan to take effect Feb. 21. Lawmakers continue to debate the policy. Whitmer has also called for a bipartisan deal on sick leave or extending negotiations into the summer, angering advocates. "Every day we delay. Michigan families have waited long enough for this basic protection that allows them to care for themselves and their loved ones without sacrificing their economic security," said Mothering Justice National Executive Director and Founder Danielle Atkinson in a statement Thursday. Contact Clara Hendrickson at chendrickson@ or 313-296-5743. This article originally appeared on Detroit Free Press: Michigan Senate passes bill to preserve tipped minimum wage
Yahoo
14-02-2025
- Business
- Yahoo
Michigan Senate passes compromise legislation on tipped wages
Michigan Senate passes compromise legislation to avert a court-ordered change to the state's minimum wage law. Feb. 13, 2025. Screenshot As sweeping changes to Michigan's minimum wage and earned sick time standards, which pose concerns in the restaurant industry, are set to take effect next week, the state Senate found a compromise on Thursday to preserve tipped wages. It's one piece to the puzzle, but after days of testimony and frequent rallies at the Capitol Building by members of the service industry asking lawmakers to intercede, supporters of the Senate's tipped wage compromise say coming to an agreement in Michigan's politically divided legislature is vital to save restaurants across the state. 'I've heard loud and clear from the people across my district, whether they are small business owners, whether they are waitresses, waiters, bartenders, that this was going to impact them in a negative way, and they wanted something to change here,' Sen. Kevin Hertel (D-St. Clair Shores) told media after session, addressing the changes to Michigan's law to take effect on Feb. 21 unless the legislature finishes a deal. After the state legislature in 2018 adopted provisions in ballot efforts that would've raised minimum wage to $15, phased out sub-minimum tipped wages and set standards for required sick leave for employees, they watered them down after the election in a move the state Supreme Court deemed unconstitutional last summer. The court's decision mandated that the changes in the ballot efforts be implemented, but lawmakers have the opportunity to pass different policies, allowing hours of testimony to get insights from business owners and employees in Michigan. Republicans in both chambers have been vocal in their support of maintaining Michigan's tipped wage offered to servers and bartenders, set at 38% of minimum wage, which hundreds of service industry professionals have rallied at the Capitol to support as many say they make far more with the current tipping system than they would at minimum wage. After Senate Democrats had proposed gradually raising tipped wages to 60% whereas House Republicans favored maintaining 38% of minimum wage, lawmakers met in the middle with Senate Bill 8, which raises tipped wages to 50% by 2031. It passed 20-12, with five Senators excused. It's not a comfortable compromise, Senate Minority Leader Aric Nesbitt (R-Porter Township) told media after the vote on the legislation, but it was one that he said Republicans carried to the finish line as Democrats, who hold the majority in Senate only supplied 8 of the yes votes, while 12 Republicans gave the bill their support. 'Senate Republicans took the lead, and we're going to continue to protect hard working small business owners,' Nesbitt said. 'Today we're saying 'small business owners, Senate Republicans are going to have your back. Hard working folks in the hospitality industry, Senate Republicans have your back'.' The eight Democrats who voted for the bill included Hertel, as well as Senate Majority Leader Winnie Brinks (D-Grand Rapids), and Sens. Sam Singh (D-East Lansing), Veronica Kleinfelt (D-Eastpointe), Jeremy Moss (D-Southfield), Dayna Polehanki (D-Livonia), Sue Shink (D-Northfield Twp.), and Paul Wojno (D-Warren). Senate Bill 8, which also allows minimum wage to reach $15 by 2027, two years faster than the plan the Republican-led House has passed, presents the clearest path to passage with House Speaker Matt Hall (R-Richland Township) applauding the Senate's actions Thursday. 'Tonight's vote is a step in the right direction, but Michigan workers can't afford more delays,' Hall said in a news release Thursday. 'I put forward a sick time benefits plan that works for everyone — now it's time for Senate Democrats to do their part. The deal is on the table, and we can get this done now.' However, not everyone was happy with the deal. Saru Jayaraman, President of One Fair Wage, called the bill a deliberate effort to strip money from the pockets of Michigan's lowest-paid workers. 'This is a blatant PAY CUT and betrayal of working people, and Michigan workers will remember exactly who stood with them and who sold them out and cut their wages. After an election cycle where workers made it abundantly clear that politicians must stand with them, we applaud the majority of Senate Democrats who listened to working people, and condemn the eight Senate Democrats who still chose to side with Republicans and corporate lobbyists to strip wages from the lowest-paid people in this state,' said Jayaraman. 'What does it even mean to be a Democrat if you vote to gut a minimum wage increase that was won in the courts and was just days away from taking effect? These senators have made their choice—now they will have to answer for it.' Changes to minimum and tipped wages will still have to get both chambers' approval and lawmakers are still in negotiations on sick time policies. The House's plan would exempt businesses with less than 50 employees from the sick leave law, while the Senate's plan would place different requirements for sick leave for businesses with fewer than 25 individuals than for businesses with 25 or more employees. Both Nesbitt and Hertel told media members that the bipartisan nature of the minimum wage compromise bodes well for coming to an agreement next week on sick leave, but it will take a lot of conversations and work to cross the steep partisan divides in Lansing for the common good. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
