GRAND RAPIDS, Mich. — Last month, the Michigan Supreme Court an increase for the state’s minimum wage that would also strip away tipped wage laws in a phased approach.
Local servers and bartenders met Thursday at Sundance Grill urging lawmakers to save their tips.
“Prices would get raised if restaurants have to pay servers more,” says Hailey, a server. “So they're paying more for their meals in general, and they know that we're getting paid a higher hourly wage, so they're going to be less inclined to tip.”
“It's how I pay my bills,” adds server Ashton. “It's how I do everything. If I went down to, like, a minimum wage, I'd have to get, like, multiple jobs.”
Right now, the minimum tipped wage is $3.93 an hour. Beginning in February 2024, tipped employees will be required to make at least 48% of the state’s minimum wage, followed by a gradual increase over several years. By February 2029, the tipped wage will be scrapped entirely.
FOX 17 spoke with lawmakers who attended Thursday’s roundtable. They say they will work toward keeping the tip credit in place.
“I have not talked to anybody that is advocating for these changes,” says Rep. Patrick Outman (91st District). “The bottom line is, we need to get to Lansing, we get to work, and we need to address this issue.”
“This is an industry that has been hurt, not only by the COVID initiatives that were implemented in the state but by the inflationary pressures that we have, and we've got to do something to salvage what we have,” says Sen. Rick Outman (33rd District).
A new survey by the Michigan Restaurant & Lodging Association shows 40% of full-service restaurants aren’t turning profits. An estimated 1 in 5 restaurants may permanently close as a result of the Michigan Supreme Court’s ruling.
However, supporters of the changes say hundreds of thousands of people who make minimum wage will have greater stability.
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