(LANSING) – Thursday night the Michigan Senate approved a bill allowing the State’s minimum wage to increase and preserve tipped wage credit.

By a vote of 20-12 Senate Bill 8 passed and now moves to the Michigan House or Representatives for consideration.

If it becomes law, the bill would raise the minimum wage in Michigan to $15 an hour by 2027. It would also preserve the tipped wage credit, which would remain at 30% for the rest of 2025, and then gradually increase and cap at 50% over six years.

The approval in the Michigan Senate comes months after a Michigan Supreme Court decision to raise the State’s minimum wage laws. It’s a decision that has been criticized by several in the service industry.