State Rep. Brian BeGole, of Antrim Township, today 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:

“This ruling is going to have a huge impact on thousands of small business owners and their employees, as well as families who are already struggling and now will experience cost hikes when they go out to eat or shop around town.

“We’ll see some local job providers go out of business with hardworking people like servers and bartenders losing their livelihoods and incomes in the process.

“Representatives of the people in the Legislature must return to work immediately to protect people from being put out of work and show our state isn’t going to just stand by as our vital small business sector is weeded out by this decision. With the ruling set to go into effect in February, the time is now to act.”

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.