In response to a Michigan Supreme Court ruling that raises the minimum wage and phases out the tip credit for service workers, state Rep. Greg Alexander is calling on the Legislature to act quickly to mitigate potential economic fallout.
The court’s decision, which will take effect on February 21st, 2025, could lead to widespread layoffs, reduced hours, and higher prices, particularly in the restaurant industry.
Alexander highlighted the urgency of finding a balanced solution that protects both workers and small businesses. He pointed to a recent survey showing that 82% of Michigan restaurant servers prefer to keep the tipping system, and 79% fear losing their jobs if the tip credit is eliminated. Additionally, two-thirds of restaurant operators indicated they might lay off employees, and nearly all would raise prices, with some facing the possibility of closing their doors permanently.
Reporting For WGRT – Choze Powell
