Fixes to the tip credit and paid sick time clear the House with overwhelming bipartisan support

State Rep. Parker Fairbairn on Thursday voted in support of House Bills 4001 and 4002, the first two bills of the legislative term, which will restore the tip credit and protect small businesses from intrusive paid sick time mandates. The bills passed the House with overwhelming bipartisan support.

“It’s a great feeling to be able to say that my first real vote on the House floor was in favor of something as important as this,” said Fairbairn, R-Harbor Springs. “I decided to run for office over five years ago in a deer blind with my dad. I knew then I could make a difference and really help our Northern Michigan and U.P. communities; that gut feeling became a reality today.”

HB 4001 ensures the tip credit is maintained at 38% while allowing for reasonable annual minimum wage increases. Leaving the tip credit at its current level allows servers and other tipped wage workers to continue earning far beyond minimum wage through their tips.

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.

Fairbairn recently served on the House Select Committee on Protecting Michigan Employees and Small Businesses, which was formed with the sole focus of addressing tipped-wage and earned sick time legislation. Last week, the committee approved both HB 4001 and 4002 with near unanimous support.

“After the election, there’s a large chunk of time for those of us who won our races but couldn’t assume office until January, and I’ll tell you I spent every second I could meeting with tipped workers and small business owners,” Fairbairn said. “The stories I heard and input I received from folks across Northern Michigan and the U.P. were invaluable when it came time to consider the legislation we passed today. This may sound corny, but it’s the people back home that have helped me be so successful in these first few weeks and we’re only just getting started.”

Both bills now move to the Senate for further consideration.

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