Garrett Neese/Daily Mining Gazette Brian Calley, president of the Small Business Association of Michigan, speaks about changes to Michigan business law at Thursday’s Wake Up Keweenaw breakfast.

HOUGHTON — The president of the Small Business Association of Michigan reviewed upcoming changes to Michigan and federal business law at Thursday’s Wake Up Keweenaw breakfast.

Brian Calley, who formerly served two terms as lieutenant governor, reported on several items, including upcoming minimum-wage increases, changes to sick time and the phase-out to tipped wages. The changes take effect Feb. 21.

“You don’t have to change anything before Feb. 21,” Calley said. “In fact, I would say, because we’re working so hard to get the legislature to make some changes and moderate some of these impacts in real time, don’t change anything before Feb. 21, but get ready in case you have to.”

Earlier this year, the Michigan Supreme Court ruled the “adopt and amend” actions used by the Legislature in 2018 to scale back the provisions of a citizen initiative to raise the minimum wage had been unconstitutional.

As passed by the legislature, the bill gradually increased the minimum wage to $12 an hour in 2022 before indexing future raises to inflation. The timeline was pushed back due to COVID, and currently puts the rate at $10.33 an hour.

Figures provided by Calley put the anticipated minimum wage at $12.48 in 2025. The tipped wage, now at 38% of minimum wage, would also increase from 48% in 2025 to 100% of minimum wage by 2029.

“Restaurant owners kind of have a double whammy, because not only is the tip wage percentage going up, but it’s being applied to a bigger number, so there’ll be some rapid changes in that type of business,” Calley said.

That date will also see adjustments to sick leave policy. The requirement now only applies to businesses with 50 or more employees, who must provide at least 40 hours of paid sick leave. Next year, the requirement drops to 10 or more employees, to whom businesses must also provide a greater number of hours — at least 72. Businesses with fewer than 10 employees must provide at least 40 hours per year and 32 hours of unpaid leave.

Calley also covered other changes at the federal level. On Jan. 1, the salary level under which people are entitled to mandatory overtime will change from $35,000 to $58,000. SBAM is suing the federal government over another bill — the Corporate Transparency Act, which will require businesses operating in the U.S. to proactively report information about their owners. The U.S. Department of Treasury argued the bill would help curb illicit finance.

Calley said SBAM believes the bill violates several constitutional rights, particularly the Fourth Amendment protections against illegal searches and seizures.

“We don’t think they should be able to investigate you for a crime with no probable cause,” he said.