Representative Ron Robinson (R-Utica) issued a statement on the bipartisan agreement between Michigan House Republicans and Senate Democrats regarding the state’s tipped wage credit. The deal preserves the tipped wage credit while gradually adjusting the minimum wage and tip credit.

“This agreement is a necessary compromise that gives immediate relief to our small businesses,” said Rep. Robinson. “There is still a lot of work to be done, but this agreement gets us off the path that was leading towards disaster.”

Here is the compromise by the numbers:

• 2025: Minimum wage: $12.48 (effective February 21)
• 2026: Minimum wage: $13.73 (January 1), Tip credit: 40%
• 2027: Minimum wage: $15.00 (January 1), Tip credit: 42%
• 2028: Tip credit: 44%
• 2029: Tip credit: 46%
• 2030: Tip credit: 48%
• 2031 and beyond: Tip credit: 50%, Minimum wage tied to Midwest CPI

The agreement was struck just eight days short of the February 21st deadline after which the original changes would have been implemented. Leadership in both the House and Senate hope to get these bills on Governor Whitmer’s desk as soon as possible.

“This isn’t perfect, nor are these the specific numbers that I was hoping for.” said Rep. Robinson. “That said, when you’re on a deadline and the livelihoods of thousands of tipped workers and restaurant owners are on the line, you must find a compromise. I’m comfortable using this plan as stop gap for the disaster that was on the horizon.” Negotiations on the changes to Earned Sick Time are still ongoing. House Republicans plan to maintain pressure on the Senate and fight for the fixes laid out in HB 4002.