Legislator played pivotal role in preserving tip credit, practical sick time reforms

State Representative Bill G. Schuette today voted for a bipartisan agreement that provides commonsense paid sick leave policies to protect Michigan workers and local job providers.

“Workers and small businesses should be allowed to have paid leave options that work for them,” Schuette said. “The Michigan Supreme Court’s ruling from last summer would have imposed a rigid, one-size-fits-all mandate on job providers no matter how big or small they are, and some businesses actually would have had to offer worse leave options with what the Court decided. These reforms will provide clarity and cut red tape so family-owned businesses can focus on serving their customers and supporting their hardworking employees.”

The agreement is part of a larger compromise to prevent job loss, higher prices for consumers and damage to local economies throughout Michigan. Schuette has prioritized these issues since the start of the 2025-26 legislative term after listening to countless workers and small business owners who expressed concern about their livelihoods. He chaired the House Select Committee on Protecting Michigan Employees and Small Businesses and oversaw the advancement of House plans that saved the tip credit and addressed sick leave policies.

Both plans were incorporated into what ultimately was advanced to the governor. Schuette voted in favor of Senate Bill 8 on Wednesday, which contained the tip credit plans and a proposal to raise the minimum wage year over year. 

“House Republicans led the charge to restore the tipped wage for restaurant workers and fix the sick time law for our workers and small businesses,” said Schuette, of Midland. “After months of inaction last term, it was time for the Legislature to come together and listen to those who were going to be impacted by the Court’s ruling once it became effective on Feb. 21. It was time to deliver solutions so that jobs weren’t lost and local businesses that have been in our communities for decades didn’t have to close for good.”

In addition to preventing baseless, costly lawsuits against small businesses over leave policies and respecting the fact that larger businesses operate differently and have more resources than those with just a few employees, House Bill 4002 also reins in “no-call, no-show” leave that would routinely leave small businesses understaffed and overwhelmed. Testimony before the select committee in January revealed that no-notice leave would also impact emergency response services, schools and more.

“These compromises aren’t perfect, but heading off the absolute chaos that would have been caused had the Court’s ruling gone into effect is a big win for workers, businesses and our economy,” Schuette said.