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P.A. 1 and P.A. 2 of 2025 were filed with the Office of the Great Seal shortly after 1 p.m. Both have immediate effect and are effective as of 12:02 a.m. Friday morning. The bills – SB 8 and HB 4002– scale back changes to a law, which was set to take effect today, that ended the sub-minimum wage rate for restaurant servers who live off tips and requires all workers to receive one hour of paid sick time for every 30 hours worked. After aggressive lobbying from restaurant workers and the business community, Whitmer and the Democratic Senate, led by Senate Majority Floor Leader Sam Singh (D-East Lansing), agreed to compromise on proposals floated by House Speaker Matt Hall (R-Richland Township)’s caucus. The final versions do the following: – Increase the tipped wage from 38% to 50% of the minimum wage by 2031. – Increase the minimum wage to $15 an hour by 2027 with the rate increasing annually based on the rate of inflation. – Allow employers to frontload an employee’s paid time off, giving small businesses of 10 employees or fewer until Oct. 1 to create a system to track the one hour of paid leave per every 30 hours worked. – Require small businesses of 10 employees or fewer to provide 40 hours of sick time a year, as opposed to 72 hours for employers of 11 employees or more. – Give small startup businesses three years to comply with the paid sick time accrual tracking requirement. – Allows employers to spell out call-in sick procedures in policy to prevent an employee from no-showing for work three days straight without repercussions. – Excludes overtime, tips and bonuses from the rate employers need to pay their employees who are taking sick days. – Exempts interns and startup companies from the earned sick leave policy, but that’s about it. – Allows part-timers to get sick time that is proportional to the hours they work and at the rate full-time employees get sick time. – The paid sick leave can carry over year after year, but can’t exceed 72 hours for businesses and 40 hours for small businesses. – Allows for a mechanism in which sick leave is banked with vacation time if companies offer that option. – Allows an employer to take personnel action against an employee who uses earned sick time if they’re not actually sick. The changes come after the One Fair Wage (minimum wage) and Time to Care (paid sick leave) succeeded (after failing in 2016) in getting the signatures for a citizen’s initiative in 2018 to eliminate the tipped wage and create a mandatory sick leave policy. The Republican-led Legislature, concerned the aggressive policy would pass at the ballot box and drive Democratic turnout, adopted the initiatives, but then quickly amended the policies through legislation. After a prolonged legal ballot, the Michigan Supreme Court ruled last summer the Legislature couldn’t do that. The Legislature adopted both initiatives, and those initiatives would have taken effect today based on the schedule the Justices set. The decision set off a mad dash by business groups and restaurant workers to urge lawmakers to make some changes to both bills. Waiters wanted to keep their tipped wages on the argument that they made good money under the status quo. They feared making a $15-an-hour base salary would dissuade people from tipping, and they’d be out money. Businesses looked at the paid sick leave policy as giving too much power to employees to not show up to work and then tilting the legal scales to employees if a dispute went to court. Any changes to the laws were aggressively challenged by organized labor, who pushed the Democratic majority in the House and Senate to let the law go into effect. However, Wendy Block of the Michigan Chamber of Commerce said too many businesses and wait staff leaned on their legislators to make changes. Their voices couldn’t be ignored. Democratic lawmakers in both the House and Senate ended up joining nearly every Republican legislator in supporting compromise changes hammered out by today’s deadline, primarily behind the scenes by Singh and Hall with the Governor’s blessing. “The grassroots on this effort saved the day,” Block said. "Businesses from all corners came out of the woodwork and told their legislators, ‘You have to fix this. This sounds great on paper, but in the real world, it doesn’t work for us.’ “The key takeaway here is that the power of the constituent is still very strong.” Agitated by what they see as a legislative defeat, One Fair Wage announced Thursday it will launch a statewide referendum to hold up the changes in SB 8 until the matter can be put to a vote of the people. “We’re mobilizing to ensure voters — not politicians — have the ultimate say in whether these protections are upheld,” said Saru Jayaraman, president of One Fair Wage. “We’re mobilizing to ensure voters – not politicians – have the ultimate say in whether these protections are upheld.” To that, Justin Winslow, CEO of the Michigan Restaurant & Lodging Association said, “It is now time for Saru Jayaraman and the astroturf One Fair Wage group to pack up shop and head back to California. Michigan’s restaurant workers did not ask for their help and they do not want it, now or ever.” Progress Michigan Executive Director Sam Inglot said it’s "disappointing that the Michigan Legislature caved to a spin campaign pushed by corporate lobbyists and voted to roll back a well-deserved raise and paid sick leave for working families in Michigan. “Hundreds of thousands of Michiganders took action to sign petitions and demand that we give workers a raise, eliminate the sub-minimum tipped wage, and implement paid sick leave in 2018. Advocates fought back against the Republican adopt-and-amend scheme and won, only to face the same betrayal in 2025 – this time in a bipartisan fashion.” Runestad has said he will not resign from his role in the Senate while he chairs the party. Rep. James Desana (R-Carleton) gave his nominating speech and Robyn Peake, president of the Republican Women’s Federation of Michigan, seconded the nomination. Maddock conceded the election by making a motion to cast a unanimous ballot for Runestad who had 63% before Maddock conceded. Maddock’s loss marks the second straight time President Donald Trump has endorsed the losing candidate in the MRP chair’s race. On Thursday, former U.S. Rep. Sander Levin, who was the last person to hold a full-time legislative position and chair a state party when he did so in 1968, said the arrangement is “workable”. Runestad also becomes the first Michigan Republican Party chair to hold an elected office while serving as chair since then-U.S. Rep. Gerrit Diekema in 1910. Maddock is a previous co-chair of the party and wife of Rep. Matt Maddock (R-Milford). In her video shown at the convention, she focused on all the ways she has upheld President Donald Trump’s agenda and the times he has recognized her. Former Livingston County GOP Chair Meghan Reckling nominated her and West Michigan conservative social media commentator Kristen Meghan Kelly seconded. Cella was Trump’s ambassador to Fiji in 2019-2022 and worked on Trump’s transition team after the 2016 election. He highlighted in his convention floor video that he’s the only one of the three running who was chosen by Trump to serve in his administration. Former Calhoun County Chair Jeannie Burchfield nominated Cella and longtime GOP activist Hank Choate, one of the so-called “fake electors” from 2020, seconded. Maddock is also a “fake elector” from 2020 whose criminal case has been stuck in the preliminary exam stage for more than a year. At the convention there didn’t seem to be many 2026 candidates campaigning for themselves. A gubernatorial candidate named Anthony Hudson hung up posters and handed out flyers, but other campaign media were signs and flyers for state party chair and vice chair positions. However, gubernatorial candidate and Senate Minority Leader Aric Nesbitt (R-Lawton) was spotted both days at the convention. He didn’t address the full convention, but he and former U.S. Senate candidate Mike ROGERS were both recognized as donors. Rogers gave $10,000 for the convention. Nesbitt’s campaign announcement video aired in the convention hall while the second round of voting was being tabulated. Speaker Matt Hall (R-Richland Township) was also present, and today a special video highlighting Hall and Michigan House Republicans was used to excite delegates about what they’re doing in Lansing. Former MRP Ethnic Vice Chair Bernadette Smith will serve as co-chair of the party. Cheryl Constantino won the admin vice chair race, Krish Mathrani won the youth vice chair race, Chris Long won the grassroots vice chair race, Susan Kokinda unseated incumbent coalitions vice chair Hassan Nehme, and Rola Makki ran an uncontested reelection race for outreach vice chair. The results of district chair races are as follows: District 1: Daire Rendon
Talking with the Off the Record panel the morning after the critical bipartisan vote the night before, Hall said he was thinking that if this package fell apart, "it would not be a productive two years. If we got it done, it would lay the foundation for maybe having a productive two years." The positive outcome – in which both Democrats and Republicans had wins they could message off of – Hall said he was upbeat about building off this foundation of compromise to next tackling a long-term road funding package. "I think everyone showed that we can put the politics aside, we can honor our word, and we can deliver our caucuses and I think that is going to set us up with a chance at having a productive two years," Hall said. Going into the vote, Hall conceded, "We haven’t worked together very much, me and the Senate Democrats and the Governor. So, we have to determine if we trust each other. Are we serious? Are people playing games? Can they deliver votes?" He got his answer. Over at the Michigan Department of Transportation, officials are grinding out a report on how to fund the roads based on the number of miles driven. The Speaker is not telling them to stop the report, but he’s made it clear, "I’ve made the assessment that’s not going to happen now." Known for his nose-counting prowess, Hall concluded, "My (legislative) solution is more viable than that politically. When you go to a mile use tax, you’re going to start losing votes because of privacy issues." Others who support the concept argue it is only fair that the more you use the roads, the more you should cough up to keep them in good shape. He is also not backing away from his call to explore draining more revenue from EV owners, which he believes is a fairness issue. The environmental lobby pushed back last week with a 2019 report that hybrid and electric car owners are paying more than the average motorist driving vehicle that gets 50 miles per gallon. The Speaker asserted that the "left wing environmental groups" are wrong. "I think that’s been disproven. They are paying less in my view than the traditional motorist is paying." As he and the Governor shift gears from sick leave to sick roads, he said she is engaged and accessible, and I can reach her "anytime I want to." In the wake of the positive bi-partisan vote last night, he seems more positive about resolving this issue, too, although he did not predict that. See his OTR appearance at wkar.org. In response, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a notice outlining key updates: The new deadline to file an initial, updated, or corrected BOI report is now March 21, 2025. Companies with later deadlines, such as those qualifying for disaster relief extensions, should adhere to their specific filing dates. During the next 30 days, FinCEN will “assess its options to further modify deadlines.” Separately, on Feb. 10, the House passed a bill that would delay the filing for entities in existence prior to Jan. 1, 2024, until Jan. 1, 2026. This extension would not impact entities formed in 2024 or 2025. We do not know if or when the Senate will address the bill. While further changes to the CTA and filing deadlines are possible, companies should prepare to file by March 21, 2025. DCD will continue to monitor this situation and provide further guidance as it becomes available. DCD OUT AND ABOUT:
Me, Mat and Pakistan President: It was a privilege for Jake German and Senator Mat to attend a dinner recently honoring Dr. Arif Ur Rehman Alvi, the 13th President of Pakistan. Dr. Alvi is a graduate of the University of Michigan dental school and is being honored by the University this past week.
Second photo at MIGOP Convention: Jake German attended the MIGOP State Convention this weekend with many friends including (from L to R): Former Birmingham State Rep. Chuck Moss, Former Birmingham Mayor Mark Nickita, Former County Commission Candidate and Troy Delegate Ken Roberts, Former State Rep. and OCRP Chairman Rocky Raczkowski, and Wayne State Governor Dr. Michael Busuito.
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DCD continues to exist as the premier resource helping municipalities navigate the waters of cannabis policy. We would be more than happy to answer any questions you may have regarding medical or recreational cannabis policy, procedure, and more. DCD is available for presentations to municipal boards, for one-on-one meetings, and for consultations. We are here to help you with: municipal lobbying, license application writing and assistance, business plans, state required operations manuals and compliance, facility design, corporate structure, and design and branding. We are experts in both medical and recreational cannabis policy and have been in the space for over ten years. We welcome any opportunity to work with you in the future! ARTICLES OF CANNABIS INTEREST: Michigan Municipalities Getting Nearly $100 Million From Marijuana Tax Detroit, Ann Arbor, Grand Rapids Among Top Recipients of Michigan Marijuana Tax Money Governor’s Plan to Fix Potholes with Pot Funds Raises Buzz in Cannabis Community Claressa Shields Suspended For Testing Positive For Marijuana After Michigan Boxing Match Doing Things Differently DCD is rebranding, and our bottom line is your bottom line. We are striving to create and foster strong relationships with clients and lawmakers, deliver results with strong ethics and class, but above all else, out-hustle and out-smart our competition every day to be the very best. We’re making chess moves while others are playing checkers. Everything we do is with you in mind, we’re doing things we’ve never done before and aggressively pursuing opportunities. The time is now. DCD has taken our firm to the next level and your involvement and investment paired with our knowledge and expertise is going to launch the great state of Michigan forward. |
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Gov. Signs Paid Sick Leave, Minimum Wage Bills
Runestad Wins Election to Chair Michigan Republican Party
Speaker Sees Positive Road Forward After Big, Bipartisan Votes
Court Lifts Remaining Nationwide CTA Injunction; BOI Filings Now Due March 21 
THE DCD MARIJUANA TEAM: YOUR COMPETITIVE EDGE!
