Lansing Regional Chamber and Choose Lansing Urge Immediate Legislative Action on Paid Sick Leave & Minimum Wage Ruling to Support Local Businesses and Workers
Lansing, MI – The Lansing Regional Chamber of Commerce (LRCC) and Choose Lansing are calling on the Michigan Legislature, specifically the Capitol Caucus members representing the Greater Lansing region, to address the recent Michigan Supreme Court ruling regarding minimum wage and earned sick time. This ruling carries significant implications for businesses across the state, particularly small and medium-sized enterprises.
While the LRCC and Choose Lansing recognize the importance of fair wages and access to paid sick leave for employees, they are concerned about the challenges this ruling could present for businesses, especially in balancing operational sustainability with regulatory compliance. To address these concerns, both organizations are urging the legislature to develop viable legislative solutions that safeguard both workers' rights and the economic health of local businesses.
“As advocates for our business community, we understand the vital role that employees play in driving economic success, but we must also be mindful of the impact this ruling may have on our small businesses,” said Tim Daman, President & CEO of the LRCC. “We believe there is a path forward that can balance the needs of both employers and employees, and we’re calling on our legislators to take action.”
To that end, the LRCC and Choose Lansing are advocating for the following key legislative changes to mitigate the impact of the ruling:
- Exempt Plans Meeting or Exceeding the Mandated 72 Hours: Employers offering plans that meet or exceed the required 72 hours of paid leave should be exempt from additional requirements, preventing unnecessary burdens on businesses already providing robust benefits.
- Exempt Small Businesses and Certain Workers: Small businesses, part-time workers, seasonal employees, and other specific categories should be exempt from mandates to ensure the continued viability of small and medium-sized enterprises.
- Require Time to be Used in Full- or Half-Day Increments: Allowing employers to require that paid time off be taken in full- or half-day increments will help streamline operations, making it easier for businesses to plan for employee absences.
- Eliminate Private Right of Action and Rebuttable Presumption: To prevent excessive litigation and administrative hurdles for businesses, the private right of action and rebuttable presumption provisions should be eliminated.
- Allow Employers to Frontload Time Off: Employers should have the flexibility to frontload 72 hours of time off, eliminating the need for complex accrual systems and providing employees with maximum flexibility.
- Support a Responsible Minimum Wage Increase with Tip Credit Preservation: The Chamber supports the Michigan Restaurant and Lodging Association’s call for a fast-tracked but responsible minimum wage increase that maintains the tip credit. This approach will help ensure that workers in the hospitality industry can continue to earn a fair wage while preserving the sustainability of these businesses.
Julie Pingston, President & CEO of Choose Lansing, emphasized the need for the preservation of the tip credit in the hospitality industry:
"The hospitality industry, particularly restaurants and lodging businesses, are vital to the economic fabric of the Greater Lansing region. Preserving the tip credit while responsibly increasing the minimum wage will ensure that these businesses can continue to operate effectively and maintain jobs while supporting their employees. It's essential that we find a balance that allows both businesses and workers to thrive in the long term."
"The hospitality industry, particularly restaurants and lodging businesses, are vital to the economic fabric of the Greater Lansing region. Preserving the tip credit while responsibly increasing the minimum wage will ensure that these businesses can continue to operate effectively and maintain jobs while supporting their employees. It's essential that we find a balance that allows both businesses and workers to thrive in the long term."
Both the LRCC and Choose Lansing are committed to meeting with each Capitol Caucus member in the coming months, accompanied by local business owners, to discuss these proposed changes in greater detail. Their goal is to ensure that any legislative action taken in response to the ruling addresses the needs of businesses while continuing to protect the rights of Michigan’s workforce.
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About Lansing Regional Chamber of Commerce:
The Lansing Regional Chamber of Commerce (LRCC) has been a trusted advocate for the business community in the Lansing region for over a century. LRCC is dedicated to fostering economic growth, providing valuable resources, and creating a vibrant business environment through advocacy, networking, and educational opportunities.
About Choose LansingTM
The vision of Choose Lansing is to inspire everyone to celebrate and love Greater Lansing as much as we do! This goes hand in hand with our mission, to positively impact our community’s quality of life by developing the region as a visitor destination. Learn more at www.lansing.org.
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