Paid Sick Leave & Minimum Wage Update
Navigate the New Paid Sick Leave & Minimum Wage Rules
The Michigan Supreme Court issued a major ruling impacting businesses of nearly every size and new paid leave and minimum wage requirements.
This page is dedicated to supporting employers in navigating the upcoming changes to paid sick leave and minimum wage laws set to take effect on February 21, 2025. Here, you'll find valuable resources, including our Action Center, where you can engage in advocacy efforts for legislative adjustments in Michigan. Explore these tools and information to stay informed and prepared for compliance.
Working with our Partners
We are working closely with our partners at the Michigan Chamber of Commerce as well as Choose Lansing on next steps, which include compliance and possible legislative fixes. The Michigan Chamber have provided several documents, which are below for your use:
Action Center
Our partners at the Michigan Chamber have developed an Action Center to engage in advocacy efforts, encouraging legislative adjustments to ensure these laws are practical and supportive of Michigan businesses. Send a ready-made email urging action:
Lame Duck Legislative Fixes - The Bills
The "Lame Duck" session refers to the period after an election and before the newly elected officials take office. During this time, outgoing legislators have a final chance to pass bills, often pushing through key adjustments that may not have previously garnered enough support. In this Lame Duck session, the focus has been on addressing critical fixes in the areas of minimum wage and paid sick leave, aiming to balance economic growth with worker support. Here are two key bills working to address these issues:
House Bill 6056 - Minimum Wage & Tip Credit Adjustments
Summary: House Bill 6056 proposes a phased increase in Michigan's minimum wage through 2029, while preserving the tip credit system vital to the hospitality industry. This gradual adjustment allows businesses and employees to adapt to higher wages responsibly over time.
- Proposed Wage Increases:
- 2025: Minimum Wage $12.00 | Tipped Wage $4.56
- 2026: Minimum Wage $12.50 | Tipped Wage $4.75
- 2027: Minimum Wage $13.00 | Tipped Wage $4.94
- 2028: Minimum Wage $14.00 | Tipped Wage $5.32
- 2029: Minimum Wage $15.00 | Tipped Wage $5.70
Pros:
- Economic Stability: The gradual increases minimize sudden financial impacts on businesses, enabling them to manage labor costs smoothly.
- Workforce Support: The wage increase helps retain workers by enhancing baseline earnings, fostering economic stability.
- Tip Credit Retention: Retains the tip credit structure, essential for the restaurant and hospitality sectors.
House Bill 6056 aligns with LRCC’s commitment to a balanced business environment, supporting economic growth and workforce development.
House Bill 6057 - Paid Sick Leave Adjustments
Summary: House Bill 6057 refines Michigan’s paid sick leave requirements, clarifying the definition of “employee” and allowing employers to frontload 72 hours of leave at the start of the year, thus avoiding complex carryover requirements. This bill also refines specific terms to help employers manage paid sick leave more effectively.
- Key Adjustments:
- Existing benefits can count toward the first year's requirement.
- Defines “wages” excluding overtime, tips, commissions, and bonuses.
- Limits carryover to 144 hours.
- Introduces safeguards against sick leave misuse.
- Clarifies the definition of “health care professional” and no-call/no-show policies (three consecutive no-shows result in termination).
- Optional payout for unused sick leave.
- Aligns statute of limitations with the Fair Labor Standards Act (FLSA).
Pros:
- Employer Flexibility: Options for frontloading hours and managing carryover reduce administrative complexities.
- Enhanced Clarity: Refined definitions help employers comply more easily.
- Abuse Prevention: Adds protections to ensure fair use of sick leave.
House Bill 6057 supports a business-friendly approach to paid sick leave while meeting workforce needs, in line with LRCC’s advocacy for policies that aid employer compliance and workforce stability.
Webinar Series
LRCC Policy & Regulatory Business Education Series
In response to the recent Michigan Supreme Court ruling on paid sick leave and minimum wage laws, the Lansing Regional Chamber of Commerce has launched the Policy & Regulatory Business Education Series presented by Foster Swift. This series is designed to guide businesses in achieving compliance by the February 21, 2025 deadline. Sessions are held at the Lansing Regional Chamber of Commerce and provide a unique opportunity for business owners to engage directly with attorneys, receive insights tailored to their specific needs, and have their pressing questions addressed.
These educational sessions have already seen strong participation from businesses across the region, highlighting the value of expert legal guidance and peer collaboration as they prepare for these legislative changes.
For details on upcoming sessions, please visit the Chamber's events page and join us as we continue to support our business community in adapting to new compliance requirements.
- Michigan Department of Treasury
- Michigan Department of Labor & Economic Opportunity
Additional Resources for Employers
News Articles
Help Desk
Our Public Affairs team is your dedicated advocate, ready to assist with any challenges your business, organization, or non-profit may face at the local, state, or federal levels of government. Whether it's navigating zoning issues, securing permits, handling licensure requirements, or ensuring business compliance, we are here to provide solutions and support. Our goal is to make it easier for you to get the answers you need, so you can focus on running your business smoothly.
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