Opinion | Michigan businesses need path forward to survive wage, sick leave mandates

Michigan’s small businesses are at a breaking point. A Michigan Supreme Court decision has imposed a massive wage hike and sweeping sick leave mandates that will take effect in February 2025. These changes will crush local businesses, forcing closures, layoffs, and reduced hours — and we need to act now to stop it.

The court’s ruling raises the state’s minimum wage by more than $2 an hour, with additional annual increases tied to inflation. By 2029, the tipped wage will be eliminated entirely, forcing servers and restaurants into financial uncertainty. At the same time, new paid sick leave requirements will burden every employer with rigid mandates and increased costs.

Let’s be clear: these changes will not help Michigan’s workers—they’ll hurt them. A recent survey shows that 82% of servers support the current tipping model, which allows them to earn far above the minimum wage. Yet nearly 20% of full-service restaurants in Michigan are at risk of closing permanently if the tip credit disappears. Two-thirds of restaurant operators say they’ll have to cut staff. This is what economic disaster looks like.

The new paid sick leave mandates add insult to injury. Even businesses that already offer better benefits than the law requires will be forced to overhaul their policies to comply with unnecessary rules. Employers who currently provide generous paid time off policies will now have to separate sick time and vacation time into different banks. Instead of offering sick leave in a lump sum at the start of the year — a system that many workers prefer — the law forces businesses to make employees accumulate sick time at a slower rate throughout the year. This creates more administrative headaches for employers while making it harder for workers to use their benefits when they need them most.

These policies ignore the realities of running a small business. Owners already stretched thin by inflation and workforce shortages will now face added costs and confusing compliance hurdles. Michigan’s small businesses are the backbone of our economy, but right now, they’re under attack.

That’s why I introduced House Bills 6056 and 6057 with bipartisan support. These bills provide a lifeline to businesses while maintaining fairness for workers.

House Bill 6056 slows the minimum wage increase to a more reasonable timeline, reaching $15 an hour by 2029, instead of the rushed court-mandated schedule. It also preserves the tipped wage structure, allowing tipped workers to continue earning a good living. This protects both businesses and employees.

House Bill 6057 addresses the paid sick leave mandates by making them practical and manageable. It balances worker protections with the realities of running a small business.

The stakes couldn’t be higher. Michigan already ranks 49th in population growth. The last thing we need is a policy that drives businesses out of the state and leaves workers unemployed.

Michigan businesses deserve relief, and workers deserve stability. The Legislature must act now to pass these bills before it’s too late.