LANSING, Mich. — Sen. Michael Webber called upon Senate leadership to immediately move on legislation approved by a bipartisan 63-41 House vote on Thursday to protect Michigan’s tip credit system and save thousands of hospitality industry jobs.
“We have known about this looming economic disaster for months, yet legislative leadership chose not to move toward any meaningful solution last year,” said Webber, R-Rochester Hills. “The new House majority moved quickly to put forward bipartisan legislation to save these jobs and avoid an economic catastrophe that will be felt in every corner of our state. I urge Senate Democrats to put this legislation up for a vote as soon as possible. Thousands of Michiganders are depending upon us for their livelihoods.”
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 take effect by Feb. 21.
Similar policy enacted in Washington, D.C., in 2023 led to the loss of more than 3,000 jobs. In addition, Massachusetts voters rejected ending their tipped minimum wage in the previous election. The Michigan Restaurant and Lodging Association estimates that one in every five restaurants would close and 50,000 jobs could be lost in Michigan if the law is not amended.
“We have heard again and again from thousands and thousands of restaurant workers whose jobs are at risk. The Legislature has both the duty and ability to protect this vital industry and its employees. But the clock is ticking; we need Senate Democrats to do the right thing and join us in the fight to save Michigan’s threatened hospitality industry,” Webber said.