Michigan passes laws for paid sick leave and minimum wage changes

In Michigan, two significant bills were recently passed to reform wage and sick leave policies. The Michigan Senate voted on February 21, 2025, to approve House Bill 4002, which modifies the Earned Sick Time Act. The bill, supported by a 26-10 vote, allows small businesses (those with 10 or fewer employees) to provide up to 40 hours of paid sick time and 32 hours of unpaid sick time. For businesses with more than 10 employees, a maximum of 72 hours of paid sick time is permitted. This policy is significant as it does not impose requirements on small businesses to provide paid sick time until October 1, 2025. Senate Majority Leader Winnie Brinks emphasized that this legislation aims to support workers during emergencies and illnesses, ensuring they have necessary protections in unpredictable situations. The proposed changes were sent to Governor Gretchen Whitmer after being approved by the GOP-controlled House with an 81-29 vote. In addition to the sick time policy, lawmakers passed the Improved Workforce Opportunity Wage Act. Governor Whitmer signed both bills into law just before a scheduled increase in Michigan's minimum wage. This new legislation will incrementally increase the state's minimum wage to $12.48 starting from February 21, 2025, rising annually to reach $15 by the year 2027. Furthermore, a new structure is set for tipped workers, resulting in their wages receiving a 38% boost this year, which is planned to reach 50% by 2030. This legislative move came as lawmakers faced the deadline to act before the original laws were reinstated by the Michigan Supreme Court's ruling in 2024, which determined that previous legislation from 2018 was unconstitutional. While these reforms have received backing from some business owners, they have faced criticism from advocates who argue that the new changes undermine the initial intentions of the sick leave and minimum wage laws. Organizations like One Fair Wage voiced their discontent, asserting that the revised bills dilute workers' rights and fail to uphold the living wage standards that were originally promised. They have announced initiatives to launch a referendum campaign aimed at allowing voters to reconsider these adjustments to the law if they gather enough support. These legislative actions highlight an ongoing tug-of-war between business interests advocating for more flexible wage policies and workers' rights groups demanding fair compensation and job security. As Michigan adapts its workforce policies, the implications for workers, small businesses, and the broader economy are yet to be fully realized, creating an environment ripe for debate and further legislative action regarding labor rights in the coming years.