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Thursday, January 30, 2025

Michigan house passes bills on tip credit restoration and paid sick leave flexibility

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State Rep. Angela Rigas | Michigan House Republicans

State Rep. Angela Rigas | Michigan House Republicans

State Representative Angela Rigas cast her vote in favor of House Bills 4001 and 4002, marking the first legislative actions of the current term. These bills aim to maintain the tip credit system and safeguard small businesses from stringent paid sick leave requirements. The legislation passed with significant bipartisan support in the House.

Rigas expressed criticism towards certain lobbyists and union representatives throughout the legislative process. "Throughout this entire process, left-leaning lobbyists and union representatives tried hijacking the system by attempting to ‘speak’ for tipped workers and small businesses," she stated. She emphasized that legislators are committed to representing tipped workers' interests, noting that many lawmakers have firsthand experience in such roles. "We heard their call to action, and we listened," Rigas added.

House Bill 4001 preserves the tip credit at 38%, allowing tipped employees like servers to earn more than the minimum wage through tips while accommodating reasonable annual increases in base wages.

House Bill 4002 provides flexibility for workers and businesses regarding paid leave options. It addresses what some perceive as overly complex regulations that even legal experts find difficult to interpret.

Rigas was a member of the House Select Committee on Protecting Michigan Employees and Small Businesses, tasked with reviewing legislation related to tipped wages and earned sick time. Last week, this committee approved both bills almost unanimously.

The proposed legislation now advances to the Senate for further deliberation.

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