Waterford Today

State Representative Mike Harris has expressed concern over the lack of legislative action to address the issue of tipped workers' wages in Michigan. The Democrat-majority House of Representatives recently declined to restore the tip credit, a wage adjustment that benefits restaurant servers and bartenders, following a Michigan Supreme Court decision in July that eliminated the tipped wage. This decision is set to take effect in February 2025.

Harris, a Republican from Waterford, criticized the Democratic majority for not taking steps to protect restaurant workers' jobs and incomes. "After a shocking court decision struck down the tipped wage, Michigan servers and bartenders are hanging on by their fingertips," Harris stated. He emphasized that these workers have been vocal about their concerns regarding potential income loss and job insecurity.

In response to the court's ruling, Harris has advocated for a bipartisan solution to maintain the tipped wage system. He recently met with local restaurant operators and business leaders in Waterford to discuss how this change could impact wages and paid leave policies.

"Tipped workers aren’t giving up, and neither am I," said Harris. "I’ll keep fighting to save the livelihoods of Oakland County servers and bartenders."

Currently, before the Supreme Court ruling takes effect, tipped workers earn $3.93 per hour plus tips but are guaranteed at least the regular minimum wage of $10.33 per hour. Many restaurant workers benefit from this system by earning substantial hourly rates through tips. However, once the new law is implemented, tipped workers will receive at least the higher minimum wage plus any additional tips they earn.

A recent survey indicated that 82% of Michigan restaurant servers wish to retain the tipping system as it stands, with 79% fearing job loss if it is eliminated. Additionally, another survey revealed that two-thirds of restaurant operators anticipate layoffs without the tip credit; 94% plan to raise menu prices, and one in five full-service restaurants might close permanently due to these changes.