Legal Updates
In the early morning hours of February 21, 2025, Michigan Governor Gretchen Whitmer signed Senate Bill 8 and House Bill 4002 into law. SB 8 amended Michigan’s Improved Workforce Opportunity Wage Act. House Bill 4002 amended the Michigan Earned Sick Time Act. This legislative update introduces several changes that provide greater flexibility for employers while maintaining essential protections for employees.
This article aims to provide Michigan employers with an overview of these amendments, their implications, and the necessary compliance requirements. Both laws are effective immediately, but employers have 30 days to implement their paid sick leave policies and notify employees.
Minimum wage and tip credit
Senate Bill 8 raises the minimum wage in Michigan to $15.00 an hour faster than the Improved Workforce Opportunity Wage Act. But unlike the prior law that was set to go into effect, SB 8 does not eliminate the tipped wage credit. Instead, it boosts the tip credit to 50%. These amounts may change with state treasurer’s inflation adjustments:
Effective date | Adjusted minimum hourly wage | Tip credit |
February 21, 2025 | $12.48 | 38% of the minimum wage |
January 1, 2026 | $13.73 | 40% of the minimum wage |
January 1, 2027 | $15.00 | 42% of the minimum wage |
January 1, 2028 | $15.00, plus inflation adjustment based on Consumer Price Index | 44% of the minimum wage |
January 1, 2029 | Prior minimum wage, plus inflation adjustment based on...
|
Read Full Story:
https://news.google.com/rss/articles/CBMi2gFBVV95cUxOVURSLXo5R2tTNXA4bVJvNkk3...