State Rep. John Roth on Wednesday issued the following statement after a Michigan Supreme Court ruling raised the minimum wage, including 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 changes go into effect Feb. 21, 2025.

“This ruling just started the countdown on a ticking time bomb within our restaurant industry,” said Roth, R-Interlochen. “Lawmakers have until February to take action and ensure that thousands of Michigan restaurant employees and businesses won’t suffer because of this decision. We must return to work now. This is bigger than elections. We’re talking about people’s livelihoods. If these changes are allowed to stand, locally owned restaurants we’ve been bringing our families to for generations will close their doors forever. We can’t let that happen.”

During the 2018 session, the Legislature adopted two citizen-initiated laws that increased the minimum wage and created a new paid sick leave rule. During the same legislative session, the Legislature then amended those laws to ensure they reflected the purpose of the initiatives and would not result in mass layoffs and shutdowns throughout Michigan small businesses. Later, a collection of progressive groups sued the state, arguing that the “adopt and amend” practice was unconstitutional.

A recent survey by the Michigan Restaurant and Lodging Association illustrates the dire consequences we’ll see if the radical changes in the 2018 proposals are allowed to stand:

• 66% of restaurant owners say they would be forced to lay off employees.
  • 20% would be forced to shut their doors.
  • 42% would be forced to cut operating hours.
  • More than 92% of restaurants would be forced to hike prices, with many anticipating increases of 20% to 25% by early 2025.

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