State Representative Bill G. Schuette continues to spearhead House Republican efforts to protect livelihoods in Michigan and today joined his House colleagues in advancing crucial reforms.

House Bills 4001-02 strike a needed balance between fostering economic growth and protecting workers. A Michigan Supreme Court ruling from last summer that is set to take effect in February will put unrealistic mandates on small businesses regarding wages and sick leave while phasing out the tip credit, which provides a key source of income for workers and in often cases is more than an employee would make with an increased minimum wage – notably in the service industry.

“This is the most pressing and urgent issue facing many employees and small businesses across our state,” Schuette said when addressing the legislation before the House. “These bills are about protecting Michiganders, not about protecting what far-left, out-of-state special interest groups want for Michigan. Last week, in more than three hours of testimony, we heard from real Michiganders like Amy, a single mother who works at a Buffalo Wild Wings, and said thanks to the tip credit she can make $95/hour while serving. She uses that to help pay for her grocery bills and put her kids through school. It is for Michiganders like Amy that these bills are about.

“We also heard from 911 Dispatchers across our state, who shared that without the changes that 4002 makes to the “no call / no show” provisions their very ability to provide the emergency services we rely on in our state will be jeopardized. These bills are about protecting Michiganders and our communities.”

HBs 4001-02 leave the current 38% tip credit while moving toward a higher minimum wage year over year. They also tweak an impractical, court-ordered, one-size-fits-all earned sick leave approach that applies to businesses that employ even one person. In its place, the bills define an employer as an entity with 50 or more workers and don’t subject businesses with less than that to the requirements.

The bills also let employees carry over more than 72 hours of unused sick time to an ensuing year if an employer permits, giving added flexibility for workers.

Schuette recently led discussion on the bills while chairing the House Select Committee on Protecting Michigan Employees and Small Businesses. The plans advanced out of committee to the House floor with overwhelming bipartisan support as House Republicans made fixing the Court’s ruling a top priority to start the 2025-26 legislative term.

HBs 4001-02 now move to the Senate for consideration.

PHOTO INFORMATION: State Representative Bill G. Schuette, of Midland, speaks on House Bills 4001-02 before the Michigan House on Thursday, Jan. 23.