EAST LANSING, Mich — East Lansing business owners are finding creative ways to stay afloat amid Michigan's new minimum wage and paid sick time laws that took effect six months ago.
- Small business owners in Michigan are struggling to adapt to new minimum wage and paid sick time requirements.
- The law that took effect six months ago requires businesses with more than 10 employees to provide 72 hours of paid sick time.
- Local business owners say implementation has been challenging despite their resilience.
"Hi good morning," Monica Gauthier greets her neighbors with a smile and donuts, a joy she shares freely with her community.
WATCH: East Lansing small businesses adapt to Michigan's new labor laws
"We spread joy, build community," Gauthier said.
But she says a law that took effect six months ago is making that harder.
"Are we in compliance? What can we do on this end and what can we do on that end that I can't even enjoy...donuts," Gauthier said.
On February 21, Michigan lawmakers reached a deal to make changes to the state's Supreme Court ruling on minimum wage and earned sick time.
In the bipartisan deal, Michigan lawmakers made changes that meant businesses with more than 10 employees have to provide 72 hours—or 9 full-time days—of paid sick time off.
The changes also raise the minimum wage by nearly $4.50 an hour over the next two years.
"It is not as easy to implement as one might think, especially for a small business, even though I'm technically considered a big business," Gauthier said.
Under the changes from the legislature, Gauthier's business is not considered small with her 19 employees, and she's not alone.
When asked about the state of small businesses after the changes, Brian Calley, CEO of the Small Business Association of Michigan, didn't mince words.
"They are really struggling right now," Calley said.
Calley says businesses with fewer than 100 employees make up two-thirds of businesses in the state.
"They're the economic infrastructure of the community," Calley said.
And the group that supported the original Supreme Court ruling is introducing a ballot proposal to bring back the court's original ruling, pushing for the minimum wage increases to include tipped workers like restaurant servers.
"They want a livable wage for all workers, no matter the tips, no matter the industry," said a spokesperson for the advocacy group.
Amidst all of it, Gauthier says she'll continue to stay afloat.
"We're going to be taking it one step at a time," Gauthier said.
Being creative with what she can control because, as she puts it, "Six months down the road, we're here kicking and resilient, and we're going to keep on doing that."
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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