By Jamie A. Hope
Michigan Capitol Confidential
Legislation before the Michigan House will fix imminent harmful change to the state’s paid sick leave and tipped wage law, supporters say, and lawmakers of both parties claim they have a solution to changes that could devastate restaurants, stores, nonprofits and others.
The Republican-controlled House on Jan. 23 approved House bills 4001 and 4002. HB 4001 passed on a vote of 63-41 while HB 4002 was approved 67-38. State Rep. Brad Slagh, R-Zeeland, voted with the majority on both bills.
Voter-initiated laws passed in 2018 force all businesses to provide paid sick leave and a higher minimum wage starting Feb. 21, though current legislative activities could modify those requirements.
Proposals to modify the impending changes are bipartisan, with Democrats offering Senate Bill 8 and Senate Bill 15 in the upper chamber, which they control.
Rep. Jamie Thompson, R-Brownstown, posted a side-by-side bill comparison on social media Jan. 12.
“Tip workers and restaurants testified today in committee that keeping (the law) as is, is crucial to the worker and the business,” Thompson told Michigan Capitol Confidential in a Jan. 14 email.
The looming laws don’t provide business owners flexibility, Thompson said.
A new law will require employers to give paid sick leave to all employees, CapCon has reported. Only state agencies are exempt.
House Bill 4002, introduced by Rep. Jay DeBoyer, R-Clay Twp., allow employers to discipline employees for missing three or more consecutive workdays without notice. It also defines paid leave to include vacation, personal days, sick leave or paid time off.
HB 4002 exempts from sick leave law seasonal employees who work 25 weeks or fewer per year and part-time employees who work 25 hours or fewer per week.
House Bill 4002 exempts small businesses and employers with fewer than 50 employees. It does not redefine what constitutes a small business.
The Senate version of the sick-leave bill, SB 15, redefines a small business to include employers with fewer than 25 employees. Current law defines a threshold of fewer than 10 employees.
House Bill 4001 and Senate Bill 8 both increase the minimum wage, though the House version uses a slower schedule.
House Bill 4001 would use this schedule:
Jan. 21, 2025: $12.00
Jan. 1, 2026: $12.50
Jan. 1, 2027: $13.00.
Jan. 1, 2028: $14.00.
Jan. 1, 2029: $15.00.
Senate Bill 8 would increase the minimum wage on this schedule:
Jan. 21, 2025: $12.48
Jan. 1, 2026: $13.73
Jan. 1, 2027: $15.00.
Both House and Senate bills call for automatically increasing the minimum wage. The Senate version’s automatic adjustment would take effect earlier (2028) than the House’s (2030).
The two bills differ in the mechanism for calculating inflation adjustments. The Senate bill calls for using the consumer price index for urban wage earners while the House bill uses a measure of inflation for the Midwest, which generally reflects the region’s lower cost of living.
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Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
Michigan Capitol Confidential
Legislation before the Michigan House will fix imminent harmful change to the state’s paid sick leave and tipped wage law, supporters say, and lawmakers of both parties claim they have a solution to changes that could devastate restaurants, stores, nonprofits and others.
The Republican-controlled House on Jan. 23 approved House bills 4001 and 4002. HB 4001 passed on a vote of 63-41 while HB 4002 was approved 67-38. State Rep. Brad Slagh, R-Zeeland, voted with the majority on both bills.
Voter-initiated laws passed in 2018 force all businesses to provide paid sick leave and a higher minimum wage starting Feb. 21, though current legislative activities could modify those requirements.
Proposals to modify the impending changes are bipartisan, with Democrats offering Senate Bill 8 and Senate Bill 15 in the upper chamber, which they control.
Rep. Jamie Thompson, R-Brownstown, posted a side-by-side bill comparison on social media Jan. 12.
“Tip workers and restaurants testified today in committee that keeping (the law) as is, is crucial to the worker and the business,” Thompson told Michigan Capitol Confidential in a Jan. 14 email.
The looming laws don’t provide business owners flexibility, Thompson said.
A new law will require employers to give paid sick leave to all employees, CapCon has reported. Only state agencies are exempt.
House Bill 4002, introduced by Rep. Jay DeBoyer, R-Clay Twp., allow employers to discipline employees for missing three or more consecutive workdays without notice. It also defines paid leave to include vacation, personal days, sick leave or paid time off.
HB 4002 exempts from sick leave law seasonal employees who work 25 weeks or fewer per year and part-time employees who work 25 hours or fewer per week.
House Bill 4002 exempts small businesses and employers with fewer than 50 employees. It does not redefine what constitutes a small business.
The Senate version of the sick-leave bill, SB 15, redefines a small business to include employers with fewer than 25 employees. Current law defines a threshold of fewer than 10 employees.
House Bill 4001 and Senate Bill 8 both increase the minimum wage, though the House version uses a slower schedule.
House Bill 4001 would use this schedule:
Jan. 21, 2025: $12.00
Jan. 1, 2026: $12.50
Jan. 1, 2027: $13.00.
Jan. 1, 2028: $14.00.
Jan. 1, 2029: $15.00.
Senate Bill 8 would increase the minimum wage on this schedule:
Jan. 21, 2025: $12.48
Jan. 1, 2026: $13.73
Jan. 1, 2027: $15.00.
Both House and Senate bills call for automatically increasing the minimum wage. The Senate version’s automatic adjustment would take effect earlier (2028) than the House’s (2030).
The two bills differ in the mechanism for calculating inflation adjustments. The Senate bill calls for using the consumer price index for urban wage earners while the House bill uses a measure of inflation for the Midwest, which generally reflects the region’s lower cost of living.
—————
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
Nessel Warns of Scams Tied to Extreme Cold
As extreme cold has swept the state in recent weeks, Michigan Attorney General Dana Nessel is reminding residents of important tips to avoid additional hardships.
If your home or property is damaged from frigid temperatures, Nessel urges residents to research contractors before hiring to avoid having an emergency repair become a financial disaster.
“Fraudsters often look for emergency situations to scam people out of their hard-earned money,” Nessel said. “When facing property damage during extreme cold, the last thing anyone needs is to fall victim. The best way to protect yourself is to stay aware of common scam tactics.”
Review these warning signs before hiring a “professional”:
• They have special offers that seem too good to be true;
• Feeling pressured to act now;
• The contract is confusing;
• They don’t have a license;
• They can’t give you references;
• You must pay for everything before they start the work;
• You must pay in cash;
• They will not write out their offer;
• Their vehicle has out-of-state license plates; and
• They don’t have a business sign on their vehicle.
To protect yourself, always:
• Check online reviews, such as the Better Business Bureau;
• Get in touch with your insurance company;
• Speak to a local licensed professional;
• Review credentials and references;
• Get more than one written estimate; and
• Ask for a contract and read it carefully.
An online complaint form can be found at secure.ag.state.mi.us/com plaints/consumer.aspx, or contact the Consumer Protection Team, P.O. Box 30213, Lansing, MI 48909, or call 517-335-7599 or toll-free at 877-765-8388.
If your home or property is damaged from frigid temperatures, Nessel urges residents to research contractors before hiring to avoid having an emergency repair become a financial disaster.
“Fraudsters often look for emergency situations to scam people out of their hard-earned money,” Nessel said. “When facing property damage during extreme cold, the last thing anyone needs is to fall victim. The best way to protect yourself is to stay aware of common scam tactics.”
Review these warning signs before hiring a “professional”:
• They have special offers that seem too good to be true;
• Feeling pressured to act now;
• The contract is confusing;
• They don’t have a license;
• They can’t give you references;
• You must pay for everything before they start the work;
• You must pay in cash;
• They will not write out their offer;
• Their vehicle has out-of-state license plates; and
• They don’t have a business sign on their vehicle.
To protect yourself, always:
• Check online reviews, such as the Better Business Bureau;
• Get in touch with your insurance company;
• Speak to a local licensed professional;
• Review credentials and references;
• Get more than one written estimate; and
• Ask for a contract and read it carefully.
An online complaint form can be found at secure.ag.state.mi.us/com plaints/consumer.aspx, or contact the Consumer Protection Team, P.O. Box 30213, Lansing, MI 48909, or call 517-335-7599 or toll-free at 877-765-8388.
Michigan to Deliver $79.3 Million in Additional Capital for Small Business
Gov. Gretchen Whitmer has announced the second round of State Small Business Credit Initiative (SSBCI) 2.0 funds, which will make $79,383,856 available for Michigan’s small businesses.
In the first round, the MEDC supported 636 loans, totaling $72 million.
“Michigan’s small businesses are the driving force behind our economy,” Gov. Whitmer said. “Today’s nearly $80 million investment in entrepreneurs and small business owners across Michigan will create good-paying jobs and help us continue leading the future of manufacturing. Let’s keep working across the aisle in Lansing and with our partners in D.C. to help businesses of all sizes expand in Michigan so we can build on our strong economic momentum.”
SSBCI is designed to catalyze private capital in the form of loans to and investments in small businesses, particularly in historically underserved communities and among entrepreneurs who may have otherwise lacked the support needed to pursue their business ambitions. SSBCI support can be transformative in a range of industries, including small manufacturing, supply chain, and other sectors.
“The SSBCI program is a key tool in our continued efforts to decrease the gap in access to capital for Michigan small businesses,” MEDC Senior Vice President of Small Business Services and Solutions Amy Rencher said. “We are proud of our commitment to underrepresented small businesses in urban and rural communities across the state, demonstrated by unlocking an additional $8.1 million in capital for loans made to VSB and SEDI-led companies.”
The state continues to help break down barriers for entrepreneurs through the SSBCI program, including the SSBCI Technical Assistance (TA) program. Michigan was awarded $5.2 million in federal funding to deliver legal, accounting, and/or financial advisory services to eligible small businesses through qualified technical assistance providers.
The TA program aims to increase awareness of SSBCI Capital Programs, to increase readiness to apply for capital, to support the successful acquisition of capital, and to provide support throughout the length of the loan.
This work has created a coordinated, networked infrastructure of quality technical assistance providers that deliver one-on-one support of pre-loan and post-close technical assistance in all areas of the state. This program is available to eligible very small businesses (VSB) with less than 10 employees and SEDI-owned businesses.
In October 2023, nine SSBCI Technical Assistance providers were selected to support entrepreneurs across the state in obtaining legal, accounting and financial advisory services to increase awareness of, and readiness for small businesses applying for capital.
In September 2024, the MSF received its second installment of TA funding from the U.S. Treasury, demonstrating the successful launch and deployment of the TA program and disbursement of installment one’s funding to TA providers. Over the next three years, TA providers will serve more than 2,000 Michigan businesses.
Early program outcomes reflect 123 unique businesses served and 686 total TA hours delivered. Of the unique businesses served, 63 were referred to an SSBCI supported lending program. TA providers supported the submission of 42 loan applications, 35 of which have received approval resulting in more than $1.8 million in capital.
In September, the U.S. Department of Treasury also announced a $9.1 million grant to launch the Michigan Auto Supplier Transition Program (MASTP) to help small and underserved automotive manufacturers and aftermarket suppliers secure financing to scale and shift to supplying the electric vehicle supply chain.
Made possible by SSBCI, MASTP will provide financial, legal, accounting, and other support services to underserved and very small businesses, including helping these firms to access the over $230 million in additional lending and equity investments made available to support Michigan businesses through the American Rescue Plan’s SSBCI program. The MEDC will oversee the program in coordination with the Michigan Department of Labor and Economic Opportunity Community and Worker Economic Transition Office. The program was anticipated to launch this month.
In the first round, the MEDC supported 636 loans, totaling $72 million.
“Michigan’s small businesses are the driving force behind our economy,” Gov. Whitmer said. “Today’s nearly $80 million investment in entrepreneurs and small business owners across Michigan will create good-paying jobs and help us continue leading the future of manufacturing. Let’s keep working across the aisle in Lansing and with our partners in D.C. to help businesses of all sizes expand in Michigan so we can build on our strong economic momentum.”
SSBCI is designed to catalyze private capital in the form of loans to and investments in small businesses, particularly in historically underserved communities and among entrepreneurs who may have otherwise lacked the support needed to pursue their business ambitions. SSBCI support can be transformative in a range of industries, including small manufacturing, supply chain, and other sectors.
“The SSBCI program is a key tool in our continued efforts to decrease the gap in access to capital for Michigan small businesses,” MEDC Senior Vice President of Small Business Services and Solutions Amy Rencher said. “We are proud of our commitment to underrepresented small businesses in urban and rural communities across the state, demonstrated by unlocking an additional $8.1 million in capital for loans made to VSB and SEDI-led companies.”
The state continues to help break down barriers for entrepreneurs through the SSBCI program, including the SSBCI Technical Assistance (TA) program. Michigan was awarded $5.2 million in federal funding to deliver legal, accounting, and/or financial advisory services to eligible small businesses through qualified technical assistance providers.
The TA program aims to increase awareness of SSBCI Capital Programs, to increase readiness to apply for capital, to support the successful acquisition of capital, and to provide support throughout the length of the loan.
This work has created a coordinated, networked infrastructure of quality technical assistance providers that deliver one-on-one support of pre-loan and post-close technical assistance in all areas of the state. This program is available to eligible very small businesses (VSB) with less than 10 employees and SEDI-owned businesses.
In October 2023, nine SSBCI Technical Assistance providers were selected to support entrepreneurs across the state in obtaining legal, accounting and financial advisory services to increase awareness of, and readiness for small businesses applying for capital.
In September 2024, the MSF received its second installment of TA funding from the U.S. Treasury, demonstrating the successful launch and deployment of the TA program and disbursement of installment one’s funding to TA providers. Over the next three years, TA providers will serve more than 2,000 Michigan businesses.
Early program outcomes reflect 123 unique businesses served and 686 total TA hours delivered. Of the unique businesses served, 63 were referred to an SSBCI supported lending program. TA providers supported the submission of 42 loan applications, 35 of which have received approval resulting in more than $1.8 million in capital.
In September, the U.S. Department of Treasury also announced a $9.1 million grant to launch the Michigan Auto Supplier Transition Program (MASTP) to help small and underserved automotive manufacturers and aftermarket suppliers secure financing to scale and shift to supplying the electric vehicle supply chain.
Made possible by SSBCI, MASTP will provide financial, legal, accounting, and other support services to underserved and very small businesses, including helping these firms to access the over $230 million in additional lending and equity investments made available to support Michigan businesses through the American Rescue Plan’s SSBCI program. The MEDC will oversee the program in coordination with the Michigan Department of Labor and Economic Opportunity Community and Worker Economic Transition Office. The program was anticipated to launch this month.
Peters Introduces Bills to Expand U.S. Manufacturing, Support Workers
U.S. Sen. Gary Peters, D-Mich., has introduced his first bills in the new Congress to help expand American manufacturing and strengthen support for Michigan manufacturers and workers.
Peters reintroduced his bipartisan Strengthening Support for American Manufacturing Act – which he introduced with Sen. Marsha Blackburn, R-Tenn. – to strengthen federal efforts to boost domestic manufacturing and support Michigan workers. The bill would authorize a study by the independent National Academy of Public Administration on how to maximize effectiveness across the U.S. Department of Commerce’s various manufacturing programs.
“Michigan has long excelled at high-precision, advanced manufacturing. Making things in Michigan not only creates more good-paying jobs for people in our state, it boosts our nation’s overall economic competitiveness on the world stage,” Peters said. “Making critical technologies like semiconductors here in Michigan also strengthens our national security by reducing our reliance on China and other foreign competitors who are actively working to undermine our businesses and workers..”
The bill – which previously passed the Senate with unanimous support – would also then require recommendations to Congress on ways to improve coordination among the programs to better serve manufacturers – many of which are small businesses.
“We work with small and mid-size manufacturers every day,” said Ingrid Tighe, President of the Michigan Manufacturing Technology Center. “And the message is clear: they are proud of what they do, they are vital to strengthening Michigan’s economy, and they need to stay competitive in a global economy. Increasing opportunities for manufacturers to access state and federal resources focused on reshoring and upskilling the manufacturing workforce, is critical to their continued success. This bill will further support manufacturers and American workers alike.”
Peters also reintroduced his Securing Semiconductor Supply Chains Act – which he is sponsoring with Blackburn and Sen. Rick Scott, R-Fla. – to strengthen federal efforts to expand domestic manufacturing of semiconductor chips. The bill would direct the U.S. Department of Commerce’s SelectUSA program, in collaboration with other federal agencies and state economic development organizations, to develop strategies that would attract investment in U.S. semiconductor manufacturers and supply chains.
Peters’ bill – which also previously passed the Senate with unanimous support – would help address the ongoing global shortage of semiconductor technologies that has disrupted a range of industries in recent years including manufacturers and automakers in Michigan.
“We appreciate Sen. Peters’ continued commitment to strengthening our national security and economic resilience by building up the semiconductor industry and supply chain here in America," said Quentin Messer, Jr., chief executive officer of the Michigan Economic Development Corporation. “As technology evolves and integrates further into every aspect of our lives, this industry remains poised for growth.”
Peters has made expanding domestic manufacturing and strengthening U.S. supply chains a top priority. Peters helped craft and pass into law the CHIPS and Science Act, which includes a provision Peters secured funding for to support the domestic production of mature semiconductor technologies and ensure that projects supporting critical manufacturing industries, such as the auto industry, are given priority status.
The CHIPS and Science Act also included Peters’ bipartisan Investing in Domestic Semiconductor Manufacturing Act, which ensures federal incentives to boost domestic semiconductor manufacturing include U.S. suppliers that produce the materials and manufacturing equipment that enable semiconductor manufacturing. Peters’ provision directly supports Michigan manufacturers like Hemlock Semiconductor (HSC) in Hemlock, which was recently awarded up to $325 million in CHIPS and Science Act funding to build a new, state-of-the-art manufacturing facility. The project will allow the company to expand production of hyper-pure polysilicon needed to manufacture semiconductor chips and is expected to create 180 manufacturing jobs, as well as thousands of construction jobs, in Michigan.
As extreme cold has swept the state in recent weeks, Michigan Attorney General Dana Nessel is reminding residents of important tips to avoid additional hardships.
If your home or property is damaged from frigid temperatures, such as a pipe burst or broken furnace, Nessel urges residents to research contractors before hiring to avoid having an emergency repair become a financial disaster.
“Fraudsters often look for emergency situations to scam people out of their hard-earned money,” Nessel said. “When facing property damage during extreme cold, the last thing anyone needs is to fall victim. The best way to protect yourself is to stay aware of common scam tactics.”
Review these warning signs before hiring a “professional”:
• They have special offers that seem too good to be true;
• Feeling pressured to act now;
• The contract is confusing;
• They don’t have a license;
• They can’t give you references;
• You must pay for everything before they start the work;
• You must pay in cash;
• They will not write out their offer;
• Their vehicle has out-of-state license plates; and
• They don’t have a business sign on their vehicle.
To protect yourself, always:
• Check online reviews, such as the Better Business Bureau;
• Get in touch with your insurance company;
• Speak to a local licensed professional;
• Review credentials and references;
• Get more than one written estimate; and
• Ask for a contract and read it carefully.
To file a complaint with the Attorney General or get additional information, contact the Consumer Protection Team, P.O. Box 30213, Lansing, MI 48909, or call 517-335-7599 or toll-free at 877-765-8388. An online complaint form can be found at secure.ag.state.mi.us/complaints/consumer.aspx.
Peters reintroduced his bipartisan Strengthening Support for American Manufacturing Act – which he introduced with Sen. Marsha Blackburn, R-Tenn. – to strengthen federal efforts to boost domestic manufacturing and support Michigan workers. The bill would authorize a study by the independent National Academy of Public Administration on how to maximize effectiveness across the U.S. Department of Commerce’s various manufacturing programs.
“Michigan has long excelled at high-precision, advanced manufacturing. Making things in Michigan not only creates more good-paying jobs for people in our state, it boosts our nation’s overall economic competitiveness on the world stage,” Peters said. “Making critical technologies like semiconductors here in Michigan also strengthens our national security by reducing our reliance on China and other foreign competitors who are actively working to undermine our businesses and workers..”
The bill – which previously passed the Senate with unanimous support – would also then require recommendations to Congress on ways to improve coordination among the programs to better serve manufacturers – many of which are small businesses.
“We work with small and mid-size manufacturers every day,” said Ingrid Tighe, President of the Michigan Manufacturing Technology Center. “And the message is clear: they are proud of what they do, they are vital to strengthening Michigan’s economy, and they need to stay competitive in a global economy. Increasing opportunities for manufacturers to access state and federal resources focused on reshoring and upskilling the manufacturing workforce, is critical to their continued success. This bill will further support manufacturers and American workers alike.”
Peters also reintroduced his Securing Semiconductor Supply Chains Act – which he is sponsoring with Blackburn and Sen. Rick Scott, R-Fla. – to strengthen federal efforts to expand domestic manufacturing of semiconductor chips. The bill would direct the U.S. Department of Commerce’s SelectUSA program, in collaboration with other federal agencies and state economic development organizations, to develop strategies that would attract investment in U.S. semiconductor manufacturers and supply chains.
Peters’ bill – which also previously passed the Senate with unanimous support – would help address the ongoing global shortage of semiconductor technologies that has disrupted a range of industries in recent years including manufacturers and automakers in Michigan.
“We appreciate Sen. Peters’ continued commitment to strengthening our national security and economic resilience by building up the semiconductor industry and supply chain here in America," said Quentin Messer, Jr., chief executive officer of the Michigan Economic Development Corporation. “As technology evolves and integrates further into every aspect of our lives, this industry remains poised for growth.”
Peters has made expanding domestic manufacturing and strengthening U.S. supply chains a top priority. Peters helped craft and pass into law the CHIPS and Science Act, which includes a provision Peters secured funding for to support the domestic production of mature semiconductor technologies and ensure that projects supporting critical manufacturing industries, such as the auto industry, are given priority status.
The CHIPS and Science Act also included Peters’ bipartisan Investing in Domestic Semiconductor Manufacturing Act, which ensures federal incentives to boost domestic semiconductor manufacturing include U.S. suppliers that produce the materials and manufacturing equipment that enable semiconductor manufacturing. Peters’ provision directly supports Michigan manufacturers like Hemlock Semiconductor (HSC) in Hemlock, which was recently awarded up to $325 million in CHIPS and Science Act funding to build a new, state-of-the-art manufacturing facility. The project will allow the company to expand production of hyper-pure polysilicon needed to manufacture semiconductor chips and is expected to create 180 manufacturing jobs, as well as thousands of construction jobs, in Michigan.
As extreme cold has swept the state in recent weeks, Michigan Attorney General Dana Nessel is reminding residents of important tips to avoid additional hardships.
If your home or property is damaged from frigid temperatures, such as a pipe burst or broken furnace, Nessel urges residents to research contractors before hiring to avoid having an emergency repair become a financial disaster.
“Fraudsters often look for emergency situations to scam people out of their hard-earned money,” Nessel said. “When facing property damage during extreme cold, the last thing anyone needs is to fall victim. The best way to protect yourself is to stay aware of common scam tactics.”
Review these warning signs before hiring a “professional”:
• They have special offers that seem too good to be true;
• Feeling pressured to act now;
• The contract is confusing;
• They don’t have a license;
• They can’t give you references;
• You must pay for everything before they start the work;
• You must pay in cash;
• They will not write out their offer;
• Their vehicle has out-of-state license plates; and
• They don’t have a business sign on their vehicle.
To protect yourself, always:
• Check online reviews, such as the Better Business Bureau;
• Get in touch with your insurance company;
• Speak to a local licensed professional;
• Review credentials and references;
• Get more than one written estimate; and
• Ask for a contract and read it carefully.
To file a complaint with the Attorney General or get additional information, contact the Consumer Protection Team, P.O. Box 30213, Lansing, MI 48909, or call 517-335-7599 or toll-free at 877-765-8388. An online complaint form can be found at secure.ag.state.mi.us/complaints/consumer.aspx.
