(WILX) -- New laws take effect Friday which give people who work for minimum wage a raise.
It also forces some businesses to pay for sick time for certain workers.
Michigan's minimum wage is up from $9.25 cents to $9.45 an hour.
That increase is going to trickle down to workers who are by-law allowed to be paid less than minimum wage.
Employees ages 16 to 19 are also getting a raise.
Teens will still get 85 percent of the minimum wage.
That's now $8.03 an hour.
Tipped employees currently make 38 percent of the minimum wage.
That means they're bumped up to $3.59 per hour.
The Vice President of Government Relations and Public Policy at the Lansing Regional Chamber of Commerce Steve Japinga says "for every business there's always challenges and one of those challenges is making sure that they are paying their employees and bringing in customers and making sure they can keep the lights on and the bills paid."
The other law taking effect deals with medical leave.
Employers with 50 or more people now must offer paid medical leave.
Workers accrue 1 hour of leave for every 35 hours worked.
Employer can set a maximum of 40 hours in a benefit year.
Both laws were originally a little more generous to workers.
That is because they started as petition drives.
Once there were enough signatures to put them on the ballot, Republicans in the state legislature passed them into law.
They then went back and watered them down during the lame-duck session.
The Attorney General and state supreme court have been asked to determine if that was legal.
News 10 let you know what happens