LANSING, Mich. — Senate Republicans on Wednesday called on the Democratic legislative majority to return to the Capitol and get serious about saving an estimated 50,000 jobs now in peril following a recent Michigan Supreme Court ruling that will affect the state’s tipped workers.
“We are speeding head-on toward an economic catastrophe, and the Democrat majority in charge of the legislative calendar seems to have little to no interest in preventing this oncoming disaster,” said Senate Republican Leader Aric Nesbitt, R-Porter Township. “People’s livelihoods are on the line. Michigan’s tipped workers need Democrats to return to Lansing and do their job. Republicans are here and ready to work across the aisle to save 50,000 jobs.”
In July, the Michigan Supreme Court ruled to force changes to the state’s minimum wage laws and eliminate the tip credit system relied upon by thousands of hospitality industry employees. These changes are set to go into effect early next year.
“Restaurant owners and servers are rightfully worried about the devastating toll this court ruling is set to take on their livelihoods,” said Senate Committee on Labor Minority Vice Chair Thomas Albert, R-Lowell. “The harsh reality is that many restaurants and small businesses will not survive the economic blow that will be caused by this ruling — thousands of people are on the verge of losing their jobs, and inflation-weary customers will face even higher costs. The good news is that there is still time for the Legislature to act and correct course, but that time is running short. Democrats must come to the table and help Republicans who are ready to solve this problem and help the people of Michigan.”
Similar policy enacted in Washington, D.C., in 2023 led to the loss of more than 3,000 jobs. The Michigan Restaurant & Lodging Association estimates that one in every five restaurants would close and between 40,000 and 60,000 jobs will be lost in Michigan if the court ruling goes into effect.
“We are blessed with hundreds of outstanding restaurants in my district — and thanks to the tipped wage system, workers I talk to in those restaurants make much more than the hourly minimum wage,” said Sen. Michael Webber, R-Rochester Hills. “I stand with the majority of servers and hospitality workers who rely on Michigan’s tip credit system to make ends meet. We need to do our jobs as lawmakers so servers and hospitality workers can do their jobs.”