State Representative Bill G. Schuette has been chosen to lead a new select committee that will lead discussion and pursue reforms to help Michigan workers maintain their way of life and small businesses keep their doors open.

“Hard working restaurant employees and small businesses are facing a looming cliff that will rob them of their well-earned tips and could shutter many family-owned businesses,” said Schuette, of Midland. “House Republicans understand the significance and seriousness of this issue. That is why the very first bills we introduced as a caucus were to restore the tip credit and fix earned sick time policy, and why our first committee action will be to immediately get working on solving this problem. It is an honor to chair this committee and I’m grateful for the opportunity entrusted to me by Speaker Hall and our caucus.”

The Select Committee on Protecting Michigan Employees and Small Businesses is a priority of the House Republican Caucus. It follows a short-sighted Michigan Supreme Court decision from last summer that puts unrealistic mandates on small businesses regarding wages and sick leave while phasing out the tip credit, which provides a key source of income for workers and in often cases is more than an employee would make with an increased minimum wage – notably in the service industry.

House Democrats did not take up legislation on the issue to close out the 2023-24 term, despite bipartisan support for reform and continued pleas from servers, bartenders and the state’s small business sector regarding what the ruling will do to their livelihoods.

“The court’s decision is effective in February. If no action is taken, a majority of restaurant operators in Michigan are going to have to start laying off staff and customers are unfortunately going to see higher prices as places try to make ends meet,” Schuette said. “That’s if places are able to stay open at all. There is simply no time to waste.”

A pair of House Republicans have already introduced the first proposals of the 103^rd Legislature – House Bills 4001 and 4002, that would strike a needed balance between economic growth and protecting workers.

The bills preserve tipped wages, move toward a higher minimum wage and maintain the status quo for earned sick leave while ensuring small businesses with low staff numbers are not harshly impacted by no-notice sick leave that would routinely leave them understaffed and overwhelmed.

The 15-member select committee, which will feature both Republican and Democrat legislators, is set to hold its first hearing next week.