North Michigan News

State Representative John Roth expressed concern following a Michigan Supreme Court ruling that raises the minimum wage and eliminates the tip credit for certain workers. This change, set to take effect on February 21, 2025, impacts servers, bartenders, and other employees who often earn more through tips than a higher minimum wage.

"This ruling just started the countdown on a ticking time bomb within our restaurant industry," stated Roth, R-Interlochen. He emphasized the urgency for lawmakers to act before February to prevent negative effects on Michigan's restaurant employees and businesses. "We must return to work now. This is bigger than elections. We’re talking about people’s livelihoods."

In 2018, the Legislature adopted two citizen-initiated laws increasing the minimum wage and establishing a paid sick leave rule. These laws were later amended by the Legislature to align with their original purpose without causing mass layoffs or business closures in Michigan. However, progressive groups challenged this "adopt and amend" practice as unconstitutional.

A survey conducted by the Michigan Restaurant and Lodging Association highlights potential consequences if these changes proceed: 66% of restaurant owners might lay off staff; 20% could shut down; 42% may reduce operating hours; over 92% would increase prices, with many expecting hikes between 20% and 25% by early 2025.