Key Updates on Wage Increases 

and Employee Benefits

New Minimum Wage and Paid Sick Leave Requirements for Michigan Businesses

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Recent legislative changes in Michigan will affect business owners, particularly small and medium-sized enterprises. Governor Gretchen Whitmer has signed two bipartisan bills that modify the state’s minimum wage and paid sick leave policies. These changes are intended to address wage standards and employee benefits, impacting compliance requirements for employers across various industries.

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Minimum Wage Increases

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Senate Bill 8 establishes an incremental increase in Michigan’s minimum wage, impacting businesses with hourly employees. The wage will rise in stages, reaching $15 per hour by January 1, 2027. 

 

Employers should note that:

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• Approximately 731,000 workers will receive wage increases.

• Tipped employees will also see gradual wage increases, aligning Michigan’s tipped wage credit with neighboring states.

• After 2027, minimum wage adjustments will be tied to inflation.

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Employers will need to plan for these changes by evaluating payroll budgets and compensation structures to remain compliant. Businesses that employ tipped workers should particularly review how the new credit adjustments affect wage calculations.

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Paid Sick Leave Policy Updates

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House Bill 4002 expands paid sick leave requirements, introducing new employee rights and employer obligations. 

 

Key provisions include:

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• Employees can use paid sick leave for medical appointments, illness, and family caregiving.

• Employers cannot require employees to find replacements when using earned sick time.

• The law aims to provide more workplace flexibility while ensuring businesses can structure leave policies in compliance with the updated regulations.

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Small business owners should review their leave policies to align with these updates and consider any necessary operational adjustments.

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Implications for Business Owners

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These legislative changes may require business owners to reassess financial planning, employee benefits, and compliance strategies. 

 

Businesses should:

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• Update payroll systems to reflect wage increases.

• Revise employee handbooks and sick leave policies.

• Ensure compliance with new record-keeping requirements.

• Prepare for potential adjustments in labor costs.

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If you or anyone you know needs additional info or guidance please reach out to Chamber COO John Long at 586-649-8185 or johnlong@semchamber.org