State Representative Mike Harris of Waterford issued a statement in response to the Michigan Supreme Court’s decision to abolish the state’s current minimum wage law, which includes eliminating the tip credit for servers, bartenders, and other tipped workers.
Harris expressed concern over the ruling, stating: “This party-line ruling plunges workers and small businesses into a world of chaos. Restaurants and other businesses will have to raise their prices, and the tipped workers who wait tables and mix drinks will wind up with a pay cut — if they don’t lose their jobs. There’s no excuse for delay. The people’s representatives must immediately stand up for the people who are facing financial uncertainty. It’s time to restore the tip credit and provide stability to restaurant workers.”
The recent surveys highlighted by Harris show that 82% of Michigan restaurant servers prefer retaining the tipping system, while 79% fear job loss due to the elimination of the tip credit. Furthermore, two-thirds of restaurant operators anticipate employee layoffs if this change is implemented; 94% would increase menu prices, and one in five full-service restaurants might close permanently.
