LANSING — Michigan lawmakers have advanced a bipartisan agreement to intervene in upcoming changes to the tipped wage.
The proposal passed by the state Senate would maintain Michigan’s tipped wage system and raises to the hourly minimum wage. The tipped wage, which currently sits at 38% of the minimum wage, would raise to 50% in 2031.
The proposal would immediately raise the hourly minimum wage to $12.48 on the Feb. 21, which was set to happen already. That change will set the hourly tipped wage at $4.74 an hour next week.
The hourly minimum wage would increase to $13.73 on Jan. 1, 2026, and $15 in 2027. Future increases would be calculated based on inflation.
The tipped wage would also be gradually increased, in 2% increments through 2030. In 2031, the tipped wage would be at least $7.50 an hour, also with a boost for inflation.
The bill — SB 8 — passed through the Democratic-controlled Senate 20 to 12, though a majority of Democrats voted against it. Republican House Speaker Matt Hall is likely to approve of the plan, and it could pass through the House late next week.
Gov. Gretchen Whitmer would need to sign the proposal into law by the 21st — she has yet to weigh in on the plan.
Lawmakers also have not yet addressed the incoming sick time policy changes. But the Senate-advanced plan is tie-barred to a sick time response, meaning the two would have to pass together to go into law.