State Rep. Ann Bollin this week voted for a bipartisan solution that will maintain Michigan’s tip credit, implement fair earned sick time policies, and provide stability for small businesses and the workers they employ.

The plan, which includes Senate Bill 8 and House Bill 4002, strikes a balance between protecting workers and supporting Michigan’s job providers. The agreement comes after lengthy negotiations between the House Republicans and Senate Democrats, reaching a compromise just ahead of the Feb. 21 deadline when changes ordered by a Michigan Supreme Court ruling were set to take effect.

“This is a huge win for Michigan’s small businesses and the hardworking men and women they employ,” Bollin said. “Servers and bartenders overwhelmingly told us they want to keep the tip credit system in place, and we listened. We also crafted a practical approach to sick time policies — one that allows employees to take time off when they need it while ensuring our small businesses and critical services can continue to operate.”

Senate Bill 8 ensures tipped workers continue earning their base wage plus tips, keeping the tip credit at 38% through 2025 while implementing gradual increases, ultimately capping at 50% of the minimum wage by 2031. The bill also strengthens penalties for employers who fail to properly compensate their employees.

House Bill 4002 fixes Michigan’s Earned Sick Time Act to provide flexible earned leave options for workers while recognizing the challenges faced by small and family-owned businesses. The plan also safeguards businesses from baseless lawsuits and protects employers from no-call, no-show absences that could leave workplaces short-staffed, particularly important in emergency services and other critical industries.

“It’s unfortunate that negotiations went down to the wire, but I’m proud we put politics aside to get this done,” Bollin said. “This bipartisan solution protects the livelihood of thousands of Michigan workers, respects the realities of running a small business, and keeps our economy strong.”