This week should wrap up the 2024 Michigan Lame Duck session, which was expected to result in a flurry of anti-small business legislation. So far, small businesses have incurred only a few losses, including the failure to make critical changes to paid sick leave and minimum wage laws and an increase in unemployment insurance benefits. The future of when session will end, and the final result still remains to seen.

On Friday, December 13, 2024, in a rare Friday session, House Republicans left the House Chamber and have refused to come back into session until there is action on the tipped wage and paid sick leave, requiring House Democrats to have all of their 56 members in attendance to vote on and pass legislation.

On Wednesday, December 18th, one member of each of the House and Senate Democratic caucuses refused to attend session. Specifically, Rep. Whitsett (D-4) of Detroit, has made passage of changes to the paid sick leave law and the tipped wage as requirement for attending session. It is important to remember that there is only a one seat majority in both the House and the Senate, so no legislation that is anti-small business has the votes to pass.

In a surprise turn of events this afternoon, December 19, after a failed “Call of the House”, Speaker Tate adjourned the House until December 31, 2024.  While it is possible for the House to return before then to pass legislation, it is highly unlikely.  This means that the list of items before the House are likely to be consider stopped. However, all Senate Democrats are currently in session and passing legislation. The current expectation is that the Senate will move through the bills on their agenda (including the bills listed below) and adjourn late today or early tomorrow morning for the year.

However, there have been many twists and turns these past two weeks, so until a final adjournment date is set, NFIB will remain vigilant.

Below are the issues that have passed or stopped for this session. Find a full list of issues that are still in the mix HERE.

Earned Sick Time & Minimum Wage
Unfortunately, the Michigan Legislature failed to make critical changes for small businesses to the Earned Sick Time Act and Minimum Wage (restoration of the tipped wage). NFIB will continue to strongly advocate for changes – the new House Republican majority has indicated that this will be a top priority when the new session starts in January.

Anti-small business legislation that passed both the Michigan House & Senate:

• Increase in Unemployment Insurance Benefits and Duration
Senate Bill 40 passed last week which would increase unemployment insurance weekly benefits from $364 to $614 over three years and indexes it to inflation thereafter. It also increases the duration from 20 to 26 weeks.

• Plumber Ratios
Senate Bill 740 creates apprentices to master plumber ratio on job sites. Currently, there are no ratios, so this could have a negative effect on non-union plumbing businesses.

DEFEATED: Anti-small business legislation that was STOPPED:

• Family Leave Optimized Benefits (paid family leave)
Unemployment Insurance style program that would allow employees up to 12 weeks of paid family leave – included a tax on employers and employees.

• Elimination of Local Preemption on Labor Mandates
Legislation would have removed the local preemptions put in place on wage and hour issues that prevent locals from passing their own minimum wage, paid sick leave policies, etc.

• Independent Contractor (1099 employees) Definition Change
Legislation would have used the California ABC test and essentially eliminated independent contractors (1099 employees) in Michigan.

• Workers Compensation Changes
Legislation would have eliminated 2011 reforms, changed and watered down definition of disability; allowed claims going back to the 1980s.

• Wage Theft Package
Legislation would have increased fines and penalties on wage and hour violations including making some of them felonies; allowed for private right of action; allowed for employees to be told the salary of other employees in the same position; eliminated non-compete agreements.

• Pay Equity Package
Legislation would update wage and hour discrimination to all protected classes in the Elliott-Larsen Act (including sexual identity, gender, weight, etc.) and allow for fines and private right of action for violations; mandatory job descriptions; allowed for employees to be told the salary of other employees in the same position; eliminated non-compete agreements.

• Bottle Deposit Law Expansion
Legislation would have expanded deposits to non-carbonated beverages like fruit juices and bottled water.

• Water Management Districts/Stormwater Fees “Rain Tax”
Legislation that would have allow local governments to levy taxes on stormwater to pay for upgraded infrastructure.

• Un-Cap Medical Malpractice Liability
Legislation would have removed the cap on non-medical damages.

• The Homeless Bill of Rights
Legislation would have made it illegal to discriminate against people who are homeless; employers would be fined for requiring a permanent address. Property owners would also be unable to move a homeless individual or their belongings from anywhere considered public property, including a storefront.

*updated on December 19, 2024