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TIPS AT RISK
The Crisis
The Michigan Supreme Court will soon decide if a 2018 action taken by the legislature known as “Adopt and Amend” was constitutional. If the court rules against the legislature, the restaurant industry will suffer because a 2018 proposal seeking to eliminate the tipped minimum wage and increase the minimum wage would likely be reinstated— creating an avoidable crisis six years later.
The Fallout
If the court rules “Adopt and Amend” unconstitutional, the likely next step would be an increase of the minimum wage to about $14 per hour and elimination of the tipped minimum wage (the “tip credit”), resulting in a 250% increase overnight. The impact of swift and unsustainable wage increases to an industry still recovering from the pandemic will be catastrophic for Michigan’s second largest private employer.
The Fallout
If the court rules “Adopt and Amend” unconstitutional, the likely next step would be an increase of the minimum wage to about $14 per hour and elimination of the tipped minimum wage (the “tip credit”), resulting in a 250% increase overnight. The impact of swift and unsustainable wage increases to an industry still recovering from the pandemic will be catastrophic for Michigan’s second largest private employer.
Tipped Workers Agree OUR TIPS ARE AT RISK
Statewide surveys of tipped workers by the Michigan Restaurant & Lodging Association show:
We need your help
How you can help #SaveMITips
Act now to educate state decision makers and the public about the need for a legislative solution that protects your ability to earn far more than standard minimum wage.
