The Michigan GOP-led House approved its first bills of the 2025 legislative term Thursday, retaining the state’s tipped wage for restaurant workers and limiting the reach of paid sick leave laws that are set to take effect on Feb. 21.

The bill now moves to the Michigan Senate.

House Bill 4001 ensures the tip credit is maintained at 38% – protecting the livelihoods of service tipped workers received a vote of 63-41. House Bill 4002 received a vote of 67-38. The bill would allow workers and small businesses to retain the paid leave options that work for them.

“It’s a great feeling to be able to say that my first real vote on the House floor was in favor of something as important as this,” said Rep. Parker Fairbairn, R-Harbor Springs.

“After the election, there’s a large chunk of time for those of us who won our races but couldn’t assume office until January, and I’ll tell you I spent every second I could meeting with tipped workers and small business owners,” Fairbairn added. “The stories I heard and input I received from folks across Northern Michigan and the U.P. were invaluable when it came time to consider the legislation we passed today.”

The bills, which received minimal support from Democrats, are a result of a legislative push to challenge a Michigan Supreme Court decision from last July. Despite an estimated 40,000 to 60,000 jobs and thousands of businesses on the line, The Michigan Restaurant and Lodging Association warned that 20% of the state’s restaurants will close, 92% will hike prices, and 68% will lay off employees as a result of the Michigan Supreme Court ruling.

Democrats did little to find a solution when they returned to session in mid-September, and failed to accomplish much when they held the House majority through the disastrous lame duck session from the November election to January.

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State Rep. Dave Prestin, R-Cedar River, noted that independent restaurants would experience the most difficulties without the remedies provided by the House bills passed on Thursday. Prestin’s career began in the service industry, including owning a truck stop with a full restaurant in Cedar River.

“I took pride in my properties, the people we employed, and the experiences we provided,” Prestin said in a statement. “But if I were staring down the barrel of these changes without any imminent relief, I would’ve been forced to shut everything down without a second thought.”

Prestin continued: “It’s simply impossible to take your budget from last year – probably already razor-thin considering inflation right now – throw in a 50% increase in expenses and still expect to operate successfully. Someone would have to get the short stick, whether it be the staff who get laid off, the reduction in product quality, or the massive increase in consumer cost. Without legislative action, independent restaurant and small business owners across Michigan, especially in the U.P., will be forced to make these excruciating decisions or shut down entirely. It cannot be allowed to happen.”