LANSING, Mich. — Hundreds of restaurant industry workers gathered on the lawn of the Capitol Wednesday, urging legislators to keep the state's “tip credit” in place.
The "Save MI Tips" rally was in response to the state's Improved Workforce Opportunity Wage Act. Several hundred people marched in unison through Lansing's streets, onto the Capitol lawn.
The act is set to raise Michigan's minimum wage to $15 an hour, but would also eliminate the tip credit. This is the result of several years of back-and-forth between legislators and eventually the Michigan Supreme Court.
The high court issued an opinion in July that meant a version of the Improved Workforce Opportunity Wage Act would finally go into effect.
The tip credit will be eliminated in stages, starting in 2025 and going through 2029.
Servers and other industry staff present at the rally Wednesday are vehemently opposed to the change, arguing it would devastate the industry.
"If our servers wanted to work minimum wage jobs, they'd go find minimum wage jobs," said Teresa Vanderzwaag, owner of The Farmhouse and Frank's Restaurant in Zeeland.
She calls the legislative act “misguided, misunderstood and completely disconnected from reality."
Industry workers like 18-year-old Jordynn expressed concerns about the impact of the changes on small businesses and the industry as a whole.
Jordynn has worked at the Peppermill Cafe in Grand Rapids for more than three years.
“We are not broken. Our system is not broken. We do not need to save something that does not need saving," Jordynn told the crowd.
Speaking directly to FOX 17, she said, "As a small business, if this law gets put in place, having to double or triple our prices, we can't afford it... and the people who come to see us, they can't afford that."
A recent survey by the Michigan Restaurant and Lodging Association found that one in five full-service restaurants would be forced to close their doors outright if the changes go into effect.
Adam, a manager at Buffalo Wild Wings in Ann Arbor, warned that the changes would “ruin the good ol' going-out-to-eat experience" and lead to a shift towards takeout-only establishments.
Despite the concerns of industry workers, national organization One Fair Wage is applauding the incoming changes.
"The Michigan Supreme Court’s decision is a significant step toward restoring democracy and economic justice in the state. The 2018 Republican-led legislature’s actions to prevent minimum wage increases and maintain the subminimum wage for tipped workers, youth and workers with disabilities was a violation of the people’s rights,” Saru Jayaraman, president of One Fair Wage, said in a statement Wednesday afternoon.
“Now, Michigan legislators have a duty to honor this historic ruling and allow these wage increases to proceed without obstruction. We applaud and stand with Michigan’s labor unions in rejecting any attempts to roll back these gains and eagerly await the full implementation of these hard-fought victories for workers across the state."
However, for the crowd gathered on Wednesday, they remain hopeful that something will intervene before the changes take effect next year.
Rep. Angela Rigas spoke briefly to the crowd Wednesday.
“This is a pressing issue,” she told FOX 17 after getting off stage. “It should be on the forefront, trying to figure out how we can fix this.”
She suggested that a citizens' initiative may be the way to reverse the changes.
"It will be devastating to this industry,” Vanderzwaag explained. “This industry has been through enough.”
The Michigan Restaurant & Lodging Association (MRLA) released the following statement:
“The Michigan Supreme Court attempted, and in our opinion, failed to provide clarity to 18,000 anxious restaurant operators today – nearly 50 days after the original ruling unnecessarily threatened to close one in five full-service restaurants in Michigan.
“The unfortunate reality is that restaurant operators are now just 156 days away from the onset of tip credit elimination, which will wreak havoc on the industry and its nearly 500,000 employees.
“A remarkable event transpired at our state Capitol today, as 700 restaurant servers and bartenders expressed their frustration, bordering on anger, that their elected leaders aren’t showing up to do their job. They are all rightfully concerned that their own jobs are at risk and they want to see action before it is too late.
“The MRLA has reserved a place at the table for elected leaders of both parties to come together, represent the will of actual workers and small businesses and save the tip credit. Let’s break bread, save jobs and preserve livelihoods together.”
Follow FOX 17: Facebook - X (formerly Twitter) - Instagram - YouTube
