Protect Small Businesses by Preserving Tip Credit and Amending Paid Sick Leave
The Northern Michigan Chamber Alliance calls on Michigan lawmakers to take immediate action in response to the changes to minimum wage and paid sick leave scheduled to take effect on February 21, 2025. The Alliance demands legislative amendments to safeguard Michigan’s small rural businesses, seasonal employers, and tipped workers.
“Northern Michigan’s small businesses are disproportionately affected by the implementation of these changes,” said Nikki Devitt, chair of the Northern Michigan Chamber Alliance and president and CEO of the Petoskey Regional Chamber of Commerce. “Our small businesses, especially those in the hospitality industry, call on our legislators to take action to ensure these businesses can compete for talent and thrive in our regional economies.”
The Northern Michigan Chamber Alliance Demands Action on Five Key Issues:
1. Address the Actual Need: Most employers already provide paid time off and should not be penalized or forced to reduce their benefits to comply with the new Earned Sick Time Act. Provide a clear, minimum threshold that employers can exceed.
2. Preserve the Tip Credit: Critical for the hospitality industry, the tip credit helps keep operational costs manageable. Removing it would harm restaurants, bars, and other service sectors. Lawmakers must preserve this system to protect jobs and businesses.
3. Exempt Small Businesses: A one-size-fits-all approach burdens small and family-owned businesses, forcing them to cut hours, lay off staff, or close. We demand exemptions that ensure small businesses can compete and survive.
4. Exempt Seasonal Businesses: Northern Michigan’s economy depends on seasonal employees who can’t absorb year-round costs. Lawmakers must recognize this and provide appropriate exemptions.
5. Amend Paid Sick Leave for Clarity: Current regulations are unclear and difficult to navigate. We need simplified rules on accrual, paid time off, and elimination of presumption language to ensure businesses can comply without confusion.
6. Take Action Before Year End: Northern Michigan businesses and workforce need resolution and clarity on these issues as soon as possible and we call on legislators to enact these amendments to the Earned Sick Time Act before the end of calendar year 2024.
“Our region’s businesses call on our legislators to take immediate action and draft clear, reasonable, and flexible legislation,” added Caitlyn Stark, president of Cadillac Chamber. “Our business owners agree that this is not a partisan issue – without action, there will be devastating effects on the sustainability and growth of their businesses, which will cascade to the individuals and families dependent on their success.”