There is a new law that, as it stands now, will go into effect February 19, 2023.  This new law could have dire consequences to the restaurant industry.

The “Improved Workforce Act” and the “Earned Sick Time Act” will:

Increase the minimum wage to $12 per hour.

The tipped minimum wage would go from the current $3.75 to $9.60 per hour.

Starting in 2023, the tipped minimum would be adjusted to 90% of full minimum wage and in 2024 would match the full minimum wage.

Apply the Medical Leave Act to all businesses with one or more employees.  (Previously, it was 50 employees.)

The Medical Leave Act requires employers to provide 1 hour of paid sick leave for every 30 hours worked with a cap of 72 hours (9 eight hour days paid) for more than 10 employees and 40 hours paid if less than 10 employees.

Obviously, this would have a devastating consequence to restaurants if enacted.

The law is currently being fought in court by the Restaurant Association and the Michigan Chamber of Commerce.  Please contact your state representative in Lansing and express how this new law would affect you and what they are going to do about it.  Also, if you have any connection with Governor Whitmer, please let her know how this law would affect you.