Written by: Arthur Havlicek
Changes to ESTA and Minimum Wage:
In 2018, the Michigan legislature approved two voter initiatives—one raising the minimum wage while phasing out the tip credit and another significantly expanding paid sick leave. Before they took effect, lawmakers controversially amended both measures, scaling them back. After years of deliberation, the Michigan Supreme Court ruled those amendments unconstitutional and ordered the original language be reinstated with an implementation date of February 21, 2025.
If left unchanged, the original language would have dealt a severe blow to businesses and jeopardized jobs across the state. Our Chamber quickly stepped in, hosting roundtables and informational sessions to educate the public on the impending changes. We advocated for smarter, more balanced solutions using the input we gathered.
Thankfully, just hours before the deadline, lawmakers passed key legislation that better-balanced worker benefits and employer realities—Senate Bill 8, which altered the Improved Workforce Opportunity Wage Act, and House Bill 4002, which altered the Earned Sick Time Act. Both were signed by Governor Whitmer the day changes were due to go into effect, narrowly preventing widespread economic disruption.
What you need to know:
Minimum Wage: Adjusted to $12.48/hour as of February 21, reaching $15/hour by 2027, with inflation-based increases thereafter. The tipped wage will be adjusted to $4.74/hour and gradually increase to 50% of the standard wage by 2031, preserving the tip credit.
Paid Sick Leave: All Michigan employers must now provide paid sick time to their employees. 72 hours per year are required for employers with 10 or more employees, and 40 hours are required for small businesses (1-9 employees). Key adjustments were also made to the carryover, front-loading, and notice requirements. Small businesses have until October 1 to comply.
While these changes provide some relief, compliance is now the priority. We remain committed to equipping our members with the resources and guidance needed to successfully navigate the new requirements.
Learn more about ESTA and Minimum Wage changes.
Small Modular Reactors:
The Southwest Michigan Regional Chamber strongly supports the bipartisan bill package introduced in the Michigan House to position Michigan as a leader in next-generation nuclear technology. Led by State Reps. Pauline Wendzel (R-Bainbridge Township) and Joey Andrews (D-St. Joseph), this legislation aims to incentivize small modular nuclear reactors (SMRs), foster nuclear innovation, and enhance the training and retention of skilled professionals within Michigan’s nuclear industry.
As demand for electricity soars, having a reliable power supply has never been more important. SMRs offer a smart, flexible solution. These compact reactors can be placed where power is needed most, from remote communities to major industrial hubs. Their modular design allows for cost-effective scaling, helping to ease grid strain while delivering a stable, carbon-free energy source for the future.
Southwest Michigan is already making strides in this area. The Palisades Nuclear Generating Station in Covert, which closed in 2022, is on track to be the first decommissioned nuclear plant in the U.S. to be restarted. Holtec International, the plant’s owner, plans to install two SMRs there, potentially doubling the site’s energy output by 2030. If successful, Palisades could become one of the first commercial-scale SMR sites in the country.
With both the Palisades site and the D.C. Cook Nuclear Plant in our region, Southwest Michigan is uniquely positioned to become a hub for next-generation energy solutions. Beyond just power production, this could create thousands of high-paying jobs, draw global investment, and build a robust pipeline of technical talent. As other states begin to explore nuclear opportunities, Southwest Michigan has the chance to lead the way.
We appreciate Reps. Wendzel and Andrews for championing this cutting-edge opportunity for economic growth. Their efforts could not come at a more critical time, and the Southwest Michigan Regional Chamber is proud to lend our voice in support as their legislation continues to move through the process.
Looking Ahead
As the Voice for Business in our region, we will continue fighting for smart policies that support economic growth and workforce stability. As always, we encourage everyone to stay informed, share feedback, and join us in making Southwest Michigan an even better place to live, work, and raise a family.
Learn more about SMR Legislation.
ActionLine is made in partnership with the Michigan Economic Development Corporation.
