An increase in Michigan’s minimum wage and required sick leave is set to take effect in February. This week on MichMash, host Cheyna Roth and Gongwer News Service’s Zach Gorchow sit down with Chris White, Michigan director of the Restaurant Opportunities Center; and Justin Winslow, president and CEO of the Michigan Restaurant and Lodging Association; to share their positions on the new law.

Subscribe to MichMash on Apple Podcasts, Spotify, NPR.org or wherever you get your podcasts.

In this episode:

• How the new minimum wage law will affect employees and businesses
• How 9/11 influenced the Restaurant Opportunities Center
• Concerns the Michigan Restaurant and Lodging Association has with the rate of increase

Following the recent Michigan Supreme Court ruling connected to the state’s new minimum wage and sick leave laws, the legislation is slated to take effect early next year.

Michigan’s $10.33 minimum wage will climb above $12 by February 2025 — and to $15 an hour by 2029. Additionally, the law will require all Michigan employers to offer up to 72 hours of paid sick leave per year to their employees, and end the tip credit system.

White says the law changes are necessary for progress.

“They don’t make enough money. They are essential workers. The cost of living is going up, so wages should go up with that cost of living,” he said.

However, not all Michigan residents and business owners agree that the changes will be beneficial to the state, and especially for small businesses.

“I think the rate and the speed by which we increase the minimum wage is important to the industry, like it would be any small business operator,” Winslow said. “But for the restaurant industry specifically, the tip credit really means life or death for a lot of folks; service, restaurants, dine-in restaurants.”  

Stakeholders are now urging the Legislature to amend the laws set to take effect in February.

More from WDET:

• How Michigan Supreme Court’s ruling on minimum wage, sick leave will affect workers and businesses
• 2024 bringing boost in state minimum wage to $10.35
• Michigan appeals court ruling reverses minimum wage increase, paid sick leave revision

More from Gongwer:

• Groups push to preserve tipped wage; Singh hopeful for deal

Legislative Republicans’ actions to halt the implementation of minimum wage increases and paid sick leave in 2018 was ruled unconstitutional by the Michigan Supreme Court. On July 31, Mothering Justice v. Attorney General ruled the actions of the Republican party “violated the people’s constitutionally guaranteed right to propose and enact laws.”

This ruling ensures the original language of the Improved Workforce Opportunity Wage Act (IWOWA) and the Earned Sick Time Act (ESTA) are implemented over the current versions — which were modified in the November 2018 general election.

Subscribe to Created Equal on Apple Podcasts, Spotify, Google Podcasts, NPR.org or wherever you get your podcasts.

By implementing the original language of the IWOWA, Michigan’s $10.33 minimum wage will climb above $12 by February 2025 — and it will be at $15 an hour by 2029. To account for inflation, it will ensure hourly wages are proportionately adjusted as they are implemented. Further, the minimum wage for tipped workers, which is $3.93 an hour, will be phased out by February 2029.

Additionally, the original language of the ESTA ensures up to 72 hours of paid sick leave per year for Michigan workers. All Michigan employers must provide this leave, meaning all employees are eligible.

Today on Created Equal, host Stephen Henderson talked to Danielle Atkinson, an advocate whose work focuses on promoting economic fairness in Michigan, and Brian Calley, the head of Small Business Association of Michigan, which has said the new rules could cost them money — and cost Michiganders jobs.

Guests

Danielle Atkinson is the founder and national director of Mothering Justice, a nonprofit that advocates for policy to support mothers of color. She says this law is beneficial because most Michiganders don’t have access to paid time off for caregiving or for themselves — and deciding between health and paying their bills isn’t fair.

“Seventy percent of voters say that they are in favor of this [legislation]. The reason why they say they’re in favor is because they need it — they don’t have access to a single paid sick day,” Atkinson said. “[This] means they’re making the choice between going to work sick or paying their bills, putting public health in jeopardy, [and] not being there for themselves or their loved ones.”

Brian Calley is the CEO of the Small Business Association of Michigan. He is concerned for Michigan workers, because those who already get a lot of time off may get less with the new ruling. 

“It imposes a one size fits all, which might help some people who had less than this or didn’t have anything at all. But it has also the potential to remove flexibility and to to also…remove the amount of time that [employees] have off today — especially if they don’t normally have sick days,” Calley said.