State Rep. Andrew Beeler, R-Port Huron, on Friday issued the following statement after the Michigan Supreme Court on Wednesday struck down the state’s current minimum wage law, ordering the elimination of the tip credit for servers, bartenders, and other workers who frequently make more with tips than they would with a higher minimum wage:
“The court’s partisan decision has sent Michigan’s restaurants and bars into a tailspin. They’ll be forced to increase their prices just to make ends meet, and some will go out of business. Many servers and bartenders will see their income drop, and others will even lose their jobs. I’ll work to protect small businesses and workers in our state. I hope my colleagues will join me and fix the law to stabilize our economy and keep Michigan workers in their jobs.”
A recent survey found that 82% of Michigan restaurant servers wanted to keep the tipping system in place, and 79% worried about losing their job if the tip credit were eliminated. Another recent survey found that two-thirds of restaurant operators expected to lay off employees if the tip credit were eliminated, 94% would raise menu prices, and one in five full-service restaurants would close permanently.
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