Downriver Today

State Representative Jamie Thompson has cast her vote in favor of legislation aimed at protecting small businesses and their employees in Wayne and Monroe counties from the impact of a recent Michigan Supreme Court decision. This ruling, which is set to be enforced in February, would impose mandates on small businesses concerning wages and sick leave while eliminating the tip credit system.

House Bills 4001-02 are designed to strike a balance between economic growth and worker protection. According to Thompson, these bills are essential to prevent the loss of tips for servers and bartenders starting February 21. "Local businesses, including some who have been open for generations and are mainstays in their communities, will have to close," she warned. She added that those remaining operational might have to increase prices, negatively affecting both the state and local communities.

Thompson highlighted surveys showing that two-thirds of Michigan restaurant operators might need to reduce staff if these mandates take effect. Furthermore, 94% of businesses foresee significant price increases for consumers, with one in five full-service restaurants potentially closing permanently.

The proposed legislation retains the current 38% tip credit while incrementally increasing the minimum wage annually. It also revises a court-mandated sick leave policy by defining an employer as having 50 or more employees, thus exempting smaller businesses from these requirements.

The bills also offer flexibility regarding unused sick leave by allowing employees to carry over more than 72 hours into the next year if permitted by their employer.

Rep. Thompson played a crucial role in bringing this legislation forward through her involvement with the Select Committee on Protecting Michigan Employees and Small Businesses. The committee received extensive testimony from business owners and workers last week, leading to strong bipartisan support for advancing the bills through the House.

"These bills ensure that every worker and every business owner in the state of Michigan knows that their representative in the Legislature is listening to their fears," said Thompson.

The legislation now awaits consideration by the Senate.

PHOTO INFORMATION: State Rep. Jamie Thompson speaks on House Bills 4001-02 on Thursday, Jan. 23.