North Michigan News

State Representative John Roth has expressed disappointment with the Democratic leadership in the Michigan state House for not addressing an issue that could significantly impact restaurant workers and small business owners. The concern arises after a lengthy legislative recess, during which Democrats did not address a recent Michigan Supreme Court ruling.

The court's decision in July mandates an increase in the minimum wage and eliminates the tip credit for servers, bartenders, and other tipped workers. These changes are set to take effect on February 21, 2025, unless legislative action is taken.

Roth criticized the lack of response from Democrats upon their return to work. “It’s bad enough that this issue has been put on hold as the Democrats have enjoyed a months-long summer vacation,” said Roth, R-Interlochen. “Now, when they return to the Capitol to work for one day, they fail to even acknowledge this looming issue.”

He emphasized the urgency of addressing potential layoffs in 2025 due to these changes. “The clock continues to tick as restaurant workers face potential layoffs in 2025,” Roth stated. He further expressed his concerns about how this would affect various community members: "Our focus should be on our constituents, not the current election cycle."

In 2018, a Republican-led Legislature had adopted laws increasing minimum wage and creating paid sick leave rules but later amended them to avoid adverse effects on small businesses. This amendment was challenged by progressive groups who claimed it was unconstitutional.

A survey by the Michigan Restaurant and Lodging Association highlighted concerns over eliminating the tip credit: 66% of restaurant owners anticipate layoffs; 20% may close; 42% foresee reduced operating hours; over 92% expect price hikes between 20% and 25%.

Roth urges Democratic colleagues to act promptly to mitigate these consequences for Michigan's restaurant industry.