LANSING, Mich. — Sen. Michael Webber voted Thursday to advance bipartisan legislation to support Michigan hospitality workers and small businesses by preserving Michigan’s tip credit system.
“For months, we have heard from service industry workers and small business owners asking for a solution that would protect their livelihoods against last summer’s court-ordered mandate to end Michigan’s tip credit system,” said Webber, R-Rochester Hills. “I have heard directly from countless servers and bartenders who enjoy the flexibility and opportunity to earn more money in less time than they would under a standard minimum wage system.”
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 beginning on Feb. 21. Senate Bill 8 would preserve the tip credit system at 38% this year, with 2% increases each following year until it reaches a 50% cap.
“While this is by no means a perfect solution, I am relieved for the tens of thousands of hospitality workers across Michigan who feared for their jobs. Republicans were finally able to get Democrats to the table and compromise on this vital bipartisan solution ahead of next week’s looming deadline. We heard their voices, and we responded,” Webber said.