North Michigan News

As the new legislative term began, House Republicans emphasized their commitment to supporting local job providers and employees. State Representatives Jay DeBoyer (R-Clay Township) and John Roth (R-Interlochen) introduced legislation addressing a Michigan Supreme Court decision from last summer, aiming to balance economic growth, livelihood protection, and preventing business closures.

"House Republicans were clear that with a Republican majority, the priorities of people we all represent were going to be put first," DeBoyer stated. He highlighted concerns from small business owners and employees about the potential impact of the court ruling, describing it as catastrophic for businesses and workers.

The court's decision imposes mandates on wages and sick leave while phasing out the tip credit. This credit is crucial for many workers in industries like service, where tips often exceed increased minimum wage earnings.

Surveys since the ruling indicate that two-thirds of Michigan restaurant operators may lay off staff if these mandates proceed. Additionally, 94% anticipate raising menu prices, with one in five full-service restaurants potentially closing permanently.

Small business owners and workers have sought compromise at the state Capitol in recent months. However, no action was taken by Democrats during their majority in late 2023-24, leaving many uncertain about their future.

"House Republicans said we were going to fight for the working class and save our small businesses and tipped wage workers; now we're delivering on that promise," Roth asserted. He stressed the importance of addressing this issue promptly to avoid severe consequences for communities if tipped workers are forced to work at lower hourly rates without tips.

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