North Michigan News

Rep. Ken Borton on Wednesday advocated for Northern Michigan restaurant workers as the House of Representatives convened, possibly for the last time until November.

The Democrat majority did not take action to restore the tip credit, a wage adjustment encouraging tips for servers and bartenders. This follows a Michigan Supreme Court decision in July that eliminated the tipped wage, set to take effect in February 2025. Tipped workers and restaurant operators, concerned about losing tipped income, have urged the Legislature to reinstate the tipped wage promptly.

“Servers and bartenders are facing doom, and now is the time for the Legislature to save their tips and their jobs,” said Borton, R-Gaylord. “Restaurant workers have been pleading for relief. But when the Legislature met today, House Democrats still refused to act. If we don’t find a bipartisan solution soon, many restaurants will close, many restaurant workers will lose their jobs, and others will get paid less. I hope my Democrat colleagues will help us save the jobs and paychecks of hard-working staff at Michigan restaurants and bars.”

Currently, tipped workers earn $3.93 per hour plus tips but never less than the regular minimum wage of $10.33 per hour. The lower tipped wage encourages larger tips, allowing many restaurant workers to make as much as $25 or $30 hourly. The Supreme Court decision will eliminate this lower wage, requiring tipped workers to receive at least the higher minimum wage plus any tips; however, customers may tip less once wages and restaurant prices rise.

A recent survey found that 82% of Michigan restaurant servers wanted to keep the tipping system in place, with 79% worried about job loss if the tip credit is removed. Additionally, another survey revealed that two-thirds of restaurant operators expect employee layoffs if the tip credit is eliminated; 94% would raise menu prices; and one in five full-service restaurants might close permanently.