By now you probably have heard that the democrat majority Michigan Supreme Court went partisan last July to strike down the Workforce Opportunity Wage Act (2018 PA 368) and Paid Medical Leave Act (2018 PA 369) arguing that they are unconstitutional because they amended ballot initiatives that had been adopted into law within the same legislative session.

This results in two never-voted-for, never-debated, anti-business laws coming into effect starting February 25, 2025.

There is still time to legislate modifications to these laws.  Many legislators of both parties and the Governor have expressed willingness to listen to changes but our industry must put the pressure on.

As it stands now:

The new minimum wage and tip credit law

In addition to the normal minimum wage increase starting January 1, 2025, the new law requires a second increase starting February 21, 2025.

As of February 21, 2025 (see article), the second new minimum wage increase goes to $12.48 per hour.  Tipped employees must be paid $5.99 per hour.  Youth minimum goes to $10.60 per hour.  (This is an increase of $2.06 per hour for tipped employees.)

Please note that starting February 21, 2025 the tip credit which allows you to pay tipped employees less than the minimum will gradually phase out until in 2030 when it will no longer exist.  This increases your labor cost dramatically.

This is a job killer.  Can you imagine?  Our payroll data show tipped employees make at least $20 per hour.  Add a $15 minimum wage to that and they are making $35 per hour.  That’s crazy.