Senate Passes Hertel Bill to Increase Wages, Support Michigan Service Workers and Small Businesses 

Feb 13, 2025 | Press Release

Bipartisan bill protects tipped credit, accelerates raise to minimum and tipped wage, and ties automatic increases to economic conditions 

LANSING, Mich. (Feb. 13, 2024) — Today, the Michigan Senate voted in bipartisan fashion to pass Senate Bill 8 to accelerate the increase of Michigan’s minimum wage and protect and improve the tipped credit. Sponsored by Sen. Kevin Hertel (D-St. Clair Shores), the bill strikes a much-needed balance on the needs of workers and the concerns of small business owners.

“When I sat down with workers and small business owners to discuss the importance of Michigan’s tipped wage system, our political differences didn’t matter — what mattered was finding a solution that allows small businesses to thrive and keep their doors open,” said Sen. Hertel. “Crafted with those perspectives in mind, this legislation protects and improves Michigan’s tipped wage, so workers earn a good living while small businesses have the stability they need to continue serving our communities. I’m grateful for my colleagues on the other side of the aisle for doing what we were sent here to do: put politics aside, find room for compromise, and deliver a solution to help move Michigan forward.”

Sen. Hertel worked closely with his legislative colleagues to ensure more Michigan residents across race, place and profession have a fair shot at securing a good-paying job and raising a family right here in Michigan. Sen. Hertel’s pragmatic legislation will support workers by: 

  • Accelerating the increase of Michigan’s minimum wage to $15/hour by 2027, shortening the original timeline where the increase would not take full effect until 2028. 
  • Protecting and improving the tipped credit, having it remain at 38% for the remainder of 2025, then gradually increasing and capping it at 50% over 6 years. 
  • Tying future minimum and tipped wage increases to economic conditions to enable worker pay to adapt to challenging times and help Michiganders make ends meet.  
“This bipartisan legislation is a result of the overwhelming advocacy from tipped workers who have spoken loudly and been in and out of the Capitol asking for our help. We were able to honor their voices while accelerating the minimum wage even faster than the original proposal,” said Senate Majority Leader Winnie Brinks (D-Grand Rapids). “Over the past several months as we met with hundreds of stakeholders, it became clear that there was no perfect solution that would satisfy all parties. But the core of our mission is to make sure Michiganders get a meaningful raise, and we made major strides in that direction tonight.” 
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