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House Republicans advance legislation to address Michigan Supreme Court mandates on wages and sick leave, aiming to shield small businesses and workers.
GOP-Led Effort Responds to Economic Threat
LANSING, Mich. — State Representative Bill G. Schuette (R-Midland) led a committee hearing on Jan. 14 to address concerns over a Michigan Supreme Court decision set to take effect next month. The ruling mandates changes to wages and sick leave policies, which small business owners and workers say could devastate local economies.
“House Republicans understand the gravity of this issue,” Schuette said. “Our restaurant workers, family-owned businesses, and thousands of jobs in Michigan will be at risk if the Legislature doesn’t act.”
Testimonies Highlight Looming Consequences
At the hearing, small business owners and employees shared their fears about the Court’s mandates, including the elimination of tipped wages and stricter sick leave requirements.
Tammy Upchurch, a server at Buffalo Wild Wings in Midland, expressed concern over losing tips that significantly supplement her income. “This would destroy anybody making 30, 40, or 50 dollars an hour sometimes,” Upchurch said. “The wage we’re paid is overly compensated by the tips we earn. If it’s not broke, don’t fix it.”
Steve LaLonde, a long-time operator of LaLonde’s Market, said the mandates could spell the end of his family-owned grocery store. “This is not crying wolf. This is real,” LaLonde said, estimating the changes would increase his business costs by $95,000 annually.
A survey presented during the hearing underscored the widespread concern. Two-thirds of Michigan restaurant operators said they would need to lay off staff, while 94% anticipated raising prices significantly. One in five full-service restaurants warned they could close permanently.
Legislation Seeks Balanced Solution
House Bills 4001 and 4002, introduced by House Republicans, aim to preserve tipped wages, move toward a higher minimum wage, and maintain the current earned sick leave structure while exempting small businesses from burdensome requirements.
The bills prioritize protecting small businesses, which employ nearly 2 million Michiganders. They address concerns raised by businesses like LaLonde’s Market and emergency services providers, such as Midland County 911 Director Lisa Hall, who warned of operational risks posed by no-notice sick leave.
“Allowing employees to call in as soon as practical creates a loophole for last-minute absences,” Hall said. “For emergency services, this can leave shifts without coverage, endangering both employees and the public.”
Partisan Divide Over Response
Schuette criticized House Democrats for failing to act on the issue in the prior term, emphasizing the urgency of the situation. “This is the biggest issue facing our state right now, and I will continue working to ensure hardworking people and their families aren’t devastated by a tone-deaf court ruling,” Schuette said.
Republicans argue the proposed legislation strikes a balance between economic growth and employee protections, preventing a crisis that could shutter small businesses and disrupt local economies.
What’s Next?
The Select Committee on Protecting Michigan Employees and Small Businesses will continue reviewing testimony and refining the legislative package. With the Court’s decision set to take effect on Feb. 21, lawmakers face a tight deadline to prevent widespread economic fallout.
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