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Small Businesses Applaud House Committee for Swift Action on the Earned Sick Time Act and Tipped Wages

Small Businesses Applaud House Committee for Swift Action on the Earned Sick Time Act and Tipped Wages

January 16, 2025

HB 4001 and 4002 move out of committee with bipartisan support

NFIB Michigan State Director Amanda Fisher applauded the advancement of HB 4001 and 4002, legislation that would restore the restaurant server tipped wage and modify the Earned Sick Time Act (ESTA) out of the House Protecting Michigan Employees and Small Business Committee and to the House floor for a vote. Both laws are set to take effect on Feb. 21, 2025, unless the Legislature acts.

“NFIB is grateful to Chairman Bill Schuette and members of the committee for prioritizing this crucial legislation and for the opportunity afforded small business owners, their employees, and others that will be affected to share their stories and concerns about the laws set to take effect,” said Amanda Fisher, NFIB Michigan State Director. “We encourage the House to vote on the bills as soon as possible so that work can begin in the Senate.”

Small businesses support the following changes included in HB 4001 – 4002:

• Restores the restaurant server’s tipped wage
• Exempts all employers with less than 50 employees
• Exempts part-time and seasonal employees
• Requires one hour for every 30 hours worked but allows flexibility including the ability to front load the time and include vacation and paid holidays
• Requires notification procedures consistent with the business’ regular absence policies
• Removes the rebuttable presumption regarding complaints (guilty until proven innocent)
• Removes the ability for the employee to directly sue an employer

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