State Rep. Karl Bohnak on Thursday voted in support of House Bills 4001 and 4002, which will restore the tip credit and protect small businesses from intrusive paid sick time mandates. The plan was introduced in response to a Michigan Supreme Court decision from last summer that forced unrealistic rules and expenses on small businesses and restaurants.
The bills passed the House with overwhelming bipartisan support.
“In my over 30 years on local television, the station I worked at shared many news stories about small businesses opening, restaurants celebrating anniversaries, or tales of generosity expressed by local entrepreneurs,” said Bohnak, R-Deerton. “It does not escape me that legislative inaction now may mark the end of many of those businesses. More so, if the radical changes to our laws are allowed to go into effect, I wonder how many small-town insurance agencies will be able to afford to sponsor the local t-ball team or if any high school students will be able to find jobs bussing tables at nearby restaurants. That’s the tragic situation our tipped workers and small businesses will face in just under a month.
“I know Lansing is far away – my newfound commute has really underscored that reality – but the consequences of legislative failure on these issues will have a very real impact in our U.P. communities. Getting this plan voted out of the House today was a huge win, but one win doesn’t mean the job is done. It’s now up to all of us to urge our friends in the Senate to expedite their processes so our legislative solutions can become law. We’ve handed them a bipartisan, common-sense plan; now it’s up to them to finish the job.”
Bohnak said that independent restaurants, smaller operations not supported by larger chains, will be most affected should the legislature not act before the Feb. 21 deadline. Independent restaurants make up most restaurants and much of the larger food service industry in the U.P.
HB 4001, passed Thursday, ensures the tip credit is maintained at 38% – protecting the livelihoods of servers, bartenders, and other tipped workers, many of whom make $30 to $40 dollars currently. The bill also guards small businesses from impossible new expenses that were expected should the credit have been phased out.
House Bill 4002 allows workers and small businesses to retain the paid leave options that work for them. The plan also clarifies the looming rules, viewed by many as a one-size-fits-all mandate that is unrealistic and so confusing even lawyers can’t understand.
Both bills now move to the Senate for further consideration.
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