State Rep. Mike Mueller today voted to support bipartisan legislation that protects the livelihoods of servers, bartenders and other tipped workers by preserving the tip credit while ensuring fair and reasonable wage increases.

“While this isn’t the perfect solution, it is a big win for Michigan’s tipped workers, who fought hard to protect their livelihoods,” said Mueller, R-Linden. “They deserve the right to keep their tips while still seeing a fair wage increase, and this compromise is the best possible scenario with our current divided government. Now, the Senate must do the right thing and work with us on a balanced solution for sick time policies.”

Senate Bill 8 maintains the tip credit at 38% through 2025 while implementing annual increases, eventually capping at 50% of the minimum wage in 2031. The plan also heightens the penalties for employers who fail to fairly compensate their staff.

SB 8, which now heads to the governor’s desk, is legislatively tied to a bill to address the paid sick time issue, meaning both would have to be signed into law for either to take effect. Sick-time negotiations between House and Senate leadership are still ongoing.