Detroit City Wire

On January 14, Brian Shoaf, Vice President of Public Policy and Business Advocacy at the Detroit Regional Chamber, addressed the House Select Committee on Protecting Michigan Employees and Small Businesses. He advocated for HB 4001-2, amendments to the Earned Sick Time Act (ESTA) that aim to resolve issues affecting businesses across Michigan, including adjustments to minimum wage laws.

HB 4002 proposes significant changes such as redefining "employee" to exclude independent contractors like babysitters. It also suggests frontloading 72 hours of earned sick time and classifying small businesses as those with fewer than 50 employees. These modifications are intended to simplify ESTA's implementation for both employers and employees.

Additionally, HB 4001 aims to maintain the tipped minimum wage at 38% while gradually increasing the general minimum wage to $15 per hour by 2028, with inflationary adjustments starting in 2029. The bill also seeks to adjust the minor worker training wage from $4.25 to 75% of the total minimum wage. These proposed changes are designed to alleviate issues with the current wage schedule released in September.

In preparation for these potential changes, Michigan businesses are advised to ensure their policies comply with existing court-ordered ESTA provisions, which include regular minimum wage increases and a phased-out tipped wage credit.