State Rep. Ann Bollin, R-Brighton Township, today issued the following statement in response to a Michigan Supreme Court ruling that will raise the minimum wage and result in 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 devastating for small businesses, particularly our local restaurants. Eliminating the tip credit system will put restaurants out of business and lead to job losses and smaller paychecks for servers and bartenders.

“Our economy cannot handle this blow. We must stand up for hardworking people and take immediate legislative action to restore the tip credit. We need to protect jobs, preserve livelihoods, and ensure our local businesses can thrive. Let’s fix this before it’s too late.”

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. Meanwhile, 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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