Speaker Pro Tem Rachelle Smit on Thursday cast a key vote to save small businesses and tipped workers from devastating mandates set to take effect at 12:01 a.m. on Friday. In a bipartisan vote, the House passed a common-sense plan – House Bill 4002 – to protect small businesses from unrealistic sick time rules while ensuring workers have access to leave time when they need it.

“While this plan is far from perfect, we fought tooth and nail to secure protections for our tipped workers and small businesses,” said Smit, R-Martin. “Senate Democrats didn’t want to do anything. The radical wing of their party was ready to watch tipped workers get laid off and small businesses close, all in the name of so-called ‘fairness.’ House Republicans didn’t let that happen. From day one, we were the adults in the room, and we continued to drag Democrats to the negotiating table until we secured a common-sense solution.”

HB 4002 guarantees all workers have access to sick time while clarifying the strict, complex rules that were originally set to take effect. The plan allows employers of all sizes to choose the sick time plan that works best for their businesses and create unique policies regarding “no call, no show” incidents. The legislation also safeguards businesses from baseless lawsuits and other attacks from left-wing activists.

“Small business owners are the hardest workers I know,” Smit said. “Having managed the books for our family dairy farm, the regular work expectations at a small business fall well beyond the traditional 9 to 5 workday. Sometimes, you’re up before dawn, and sometimes, you’re working well after midnight. Our hard-fought plan guarantees businesses like ours have the flexibility they need to be successful and keep their doors open.”

A plan to protect tipped workers, Senate Bill 8, passed the House Wednesday, maintains the tip credit at 38% through 2025 while implementing annual wage increases, eventually capping at 50% of the minimum wage in 2031. The plan also heightens the penalties for employers who fail to fairly compensate their staff.

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