MI Bill Saves Tipped Wage, Amends Minimum Wage

LANSING, MI — The Michigan Senate passed a bill Thursday night that will keep the state's current tipped wage while gradually increasing minimum wage.

The bill passed with a bipartisan 20-12 vote and now heads to the state House for consideration.

If the bill passes the House and is signed into law, Michigan's tipped wage would remain the same for the rest of 2025 ($4.01), then gradually increase to 50 percent of the minimum hourly wage over the next six years.

The bill will also push Michigan's minimum wage to $12.48 an hour for the rest of 2025, and then to $13.73 an hour in 2026 before reaching $15 an hour in 2027.

If the bill fails and no other compromise is reached by Feb. 21, then Michigan's tipped wage will jump to $5.99 an hour and eventually to 100 percent of the minimum wage by 2030. The state's minimum wage will jump to $12.48 an hour and to $15 an hour by 2028.

Additionally, businesses with over 10 employees will have to provide up to 72 hours of earned paid sick leave annually, while small businesses with less than 10 workers would have to offer up to 40 hours annually.

Those increases are because the Michigan Supreme Court reinstated the Wage Act, which was originally approved to appear on the ballot in 2018. But before it could reach voters, Republican-led lawmakers adopted it and later watered-down the proposal, violating the state's constitution.

Thursday's bill does not address mandatory paid sick time, which is another contentious issue among lawmakers and business owners.

The bill comes as some restaurants across Michigan warned drastic increases to tipped workers would force changes and could ultimately hurt servers in the industry.

"This bipartisan legislation is a result of the overwhelming advocacy from tipped workers who have spoken loudly and been in and out of the Capitol asking for our help. We were able to honor their voices while accelerating the minimum wage even faster than the original proposal," says Senate Majority Leader Winnie Brinks. "Over the past several months as we met with hundreds of stakeholders, it became clear that there was no perfect solution that would satisfy all parties. But the core of our mission is to make sure Michiganders get a meaningful raise, and we made major strides in that direction tonight."

The Michigan Restaurant and Lodging Association (MRLA) also applauded the bill’s passage.

"The preservation of the tip credit system will help ensure the continued vitality of our state's restaurant industry and the opportunities it provides for thousands of Michigan families," President Justin Winslow said.

Related — MI Poll Shows Strong Support For Minimum Wage Hike, Sick Time Benefits