LANSING, Mich. (WZMQ) – Restaurant workers took over the capitol lawn this morning, asking lawmakers to stop incoming changes to the minimum and tipped wage system.
A Michigan Supreme Court decision will raise the minimum wage and phase out tipped wages starting in February. That decision brought hundreds of servers out to the capitol lawn to protest.
Groups advocating in favor of the decision say workers shouldn’t have to rely on tips to make the wages they deserve. Arguing that getting rid of the tipped wage credit will ultimately mean servers are paid fairly.
The workers at today’s rally said the reality is the removal of the tip credit will actually lead to a pay cut.
The current adjusted tipped wage is $3.93 an hour. Michigan wage laws require restaurants to pay their tipped workers at least minimum wage if tips don’t cover the difference.
Lu Hayoz is the owner and operator of Peppermill Cafe in Grand Rapids. She said that if that tipped credit is removed, it will put more wage costs on restaurants, and the increased burden on restaurants will lead to layoffs. With fewer workers, Hayoz said the quality of service will go down, and prices will go up.
“We didn’t ask for this and we don’t want it. it’s just that simple. We literally will be losing half if not more of our income when this goes through.” Hayoz said. “The only way restaurants will be able to survive this huge pay increase, along with the 72 hours of paid sick time for everybody is to increase our prices.”
Bartender and server in White Lake, Josh Dickinson said he’s worried about what it will do for the overall economy of the service industry. The Michigan Restaurant and Lodging Association has estimated the changes could force 20% of restaurants to close their doors. Workers are worried if customers stop tipping, servers will make less because of a law intended to help them make more.
The state legislature will have the chance to introduce a new minimum wage bill before the end of the year to overrule the 2018 law. Without action, tipped wages will gradually increase to equal minimum wage by 2030.
