State Representative Bill G. Schuette today led the advancement of two bills that protect livelihoods and will keep many small businesses across Michigan from having to close their doors for good.

House Bills 4001-02 were advanced without opposition by the House Select Committee on Protecting Michigan Employees and Small Businesses, which is chaired by Schuette.

“This is a major step in the right direction to protect our workers and local, family-owned businesses. I am grateful to the committee for its work, those who came to testify and proud we could send such a strong, bipartisan message on the importance of this legislation,” Schuette said. “The work of the committee is especially important as we are approaching the Feb. 21 effective date for the Court’s decision. As we heard over this week, if the Legislature fails to act, the impacts are clear. People will be put out of work, prices will go up and family-owned small businesses will close.”

In response to a short-sighted Michigan Supreme Court decision from last summer, the proposals preserve tipped wages, move toward a higher minimum wage and maintain much of the intent behind an original paid sick time initiative while ensuring businesses and other entities with low staff numbers are not harshly impacted by no-notice sick leave that would routinely leave them understaffed and overwhelmed.

“House Republicans are delivering solutions on this issue. I am hopeful the Senate and the governor will join us in getting these reforms across the finish line in the coming weeks before a single job is lost due to these damaging mandates,” Schuette said.

The court’s decision put unrealistic mandates on small businesses while phasing out the tip credit, which provides a key source of income for workers and in many cases is more than an employee would make with an increased minimum wage – notably in the service industry. Dozens of servers, restaurant owners and others who run small businesses spoke out against the ruling in recent days before the select committee and over the past several months with continued Democrat inaction in Lansing.

HBs 4001-02 leave the current 38% tip credit since it works for workers. The plans also move toward a higher minimum wage year over year and tweak an impractical, court-ordered, one-size-fits-all earned sick leave approach that applies to businesses that employ even one person. In its place, the bills define an employer as an entity with 50 or more workers and don’t subject businesses with less than that to the requirements.

The legislation also lets employees carry over more than 72 hours of unused sick time to an ensuing year if an employer permits, giving added flexibility for workers.

The plans now move to the full House for consideration.

PHOTO INFORMATION: State Representative Bill G. Schuette, who chairs the House Select Committee on Protecting Michigan Employees and Small Businesses, listens to testimony on House Bills 4001-02 during a hearing on Thursday, Jan. 16.