On Jan. 14, Brian Shoaf, the Detroit Regional Chamber’s Vice President of Public Policy and Business Advocacy, testified before the House Select Committee on Protecting Michigan Employees and Small Businesses in support of HB 4001-2, which are necessary amendments to the Earned Sick Time Act (ESTA)’s dangerous issues for business across Michigan, as well as minimum wage laws.
As introduced, HB 4002 makes several key changes: the definition of employee to make sure that it does not include independent contractors that you hire at work or in your own home, like a babysitter. It also allows the frontloading of the 72 hours of earned sick time and defines small business as less than 50 employees among other changes that we have been working for. These changes will make the implementation of ESTA easier for both employees and employers.
HB 4001 would retain the tipped minimum wage at 38% and have a gradual increase in the minimum wage to $15 per hour by 2028, with inflationary adjustments starting in 2029. Additionally, it would change the minor worker training wage from $4.25 to 75% of the total minimum wage. These improvements will help ease the current wage schedule released in September.
In the meantime, Michigan businesses should work a dual track of making sure your policies will meet the provisions of the court-ordered law as ESTA currently stands, with regular minimum wage increases, a tipped wage credit phase-out, and extreme changes to earned sick time.
View the full video below.