North Michigan News

State Rep. Cam Cavitt on Wednesday issued a statement following a Michigan Supreme Court ruling that raised the minimum wage and eliminated the tip credit for servers, bartenders, and other workers who frequently earn more through tips than they would with a higher minimum wage. The changes are set to take effect on February 21, 2025.

“The Supreme Court got this wrong, plain and simple,” said Cavitt, R-Cheboygan. “Judicial activists on the court disagreed with the common-sense solutions the people’s representatives developed, so they took it upon themselves to jam through a radical liberal agenda anyway. This decision will close family restaurants that have been around for generations. The food service ‘first jobs’ we all relied on in high school will disappear. People will suffer because a few stuffy judges decided they wanted to play politician for a day.”

During the 2018 session, the Legislature adopted two citizen-initiated laws that increased the minimum wage and created a new paid sick leave rule. During the same legislative session, lawmakers amended those laws to ensure they reflected the purpose of the initiatives without causing mass layoffs and shutdowns throughout Michigan small businesses. Subsequently, progressive groups sued the state, arguing that the "adopt and amend" practice was unconstitutional.

A recent survey by the Michigan Restaurant and Lodging Association highlights potential consequences if these changes stand:

66% of restaurant owners say they would be forced to lay off employees.

20% would be forced to shut their doors.

42% would be forced to cut operating hours.

More than 92% of restaurants would be compelled to hike prices, with many anticipating increases of 20% to 25% by early 2025.

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