There are several key pieces of legislation currently under consideration that could significantly impact businesses of all sizes and industries. Some of the most pressing issues include minimum wage increases and tipped wage credits, expanded paid leave, U.S. Department of Labor’s (DOL) overtime rule, and the Corporate Transparency Act.

Earned Sick Time and Minimum Wage / Tipped Wage Credit

Bipartisan legislation has been introduced to amend both the Earned Sick Time Act (House Bill 6057) and the minimum wage law (House Bill 6056). These changes, which were originally set to take effect in February 2025 following Michigan Supreme Court rulings, are now in question. The outcome will depend on the progress of these two bills during the remaining limited legislative sessions of the year. The bills have been referred to the House Regulatory Affairs Committee and must pass through the House swiftly if they are to reach the Governor’s desk before the end of 2024. We remain hopeful that bipartisan support will lead to the successful passage of these important measures.

Overtime Rule

On November 15, a federal judge in the Eastern District of Texas issued a nationwide ruling striking down the Department of Labor’s 2024 regulation, which sought to raise the minimum salary threshold for exempt status under the Fair Labor Standards Act (FLSA). This ruling invalidates the new salary levels that were scheduled to take effect, including both the July and January thresholds, as well as the automatic updates set to occur every three years. As a result, the salary threshold from the 2019 regulations—$35,568 per year or $683 per week—remains in effect for all covered employers and employees nationwide.

Corporate Transparency Act

Under the Corporate Transparency Act, small businesses need to file beneficial ownership information reports (BOIR) with the Department of Treasury by January 1, 2025. While there are still efforts underway to delay implementation, not filing by the deadline puts small business owners at risk of criminal penalties and fines up to $10,000. The law was enacted in 2021 to combat illicit activity, including tax fraud, money laundering, and terrorism financing, by capturing more ownership information for specific U.S. businesses. Businesses must provide their legal name and trademarks, as well as their current U.S. address. They’ll also need to provide a taxpayer identification number and specify the jurisdiction where they were formed or registered. The US Chamber has created a free step-by-step guide to help complete the reports.

We are committed to supporting our members through these changes and beyond. As always, we will work closely with elected officials to advocate for policies that foster a strong, thriving business environment in West Michigan. We’ll also keep you informed on the progress of this legislation. Be sure to join our next Advocacy in Action program to stay engaged on the key issues impacting our community.