LANSING (WWJ) -- Both Democrats and Republicans have voiced interest in a move to preserve the current tipped wage system in Michigan, before changes take effect next year.
The elimination of the "tip credit" — which allows a lower minimum wage for tipped workers — will go away in February 2025, unless lawmakers take action.
But despite bipartisan support, so far, nothing has been done in the lame duck session.
Speaking to WWJ Newsradio 950's Ryan Wrecker, State Rep. Jaime Greene (R-Richmond) said there's an impending crisis, and lawmakers need to act now.
"According to the Michigan Restaurant and Lodging Association, 66% of restaurant owners anticipate layoffs, 20% could be forced to shut down entirely, 42% expect to cut their operating hours, and over 92% believe they will need to raise their prices," Green said.
Green said while the clock is ticking on this issue, Democrats are using this time to push their progressive agenda.
"My plea to them would be: Listen to the voters who just voted in this last election," she said. "You can still save yourself in the next term, and we can come together in the next term immediately to work on this."
Back in July, the Michigan Supreme Court ruled that changes sought by a 2018 ballot initiative — which were adopted by the Legislature and then amended before becoming law — will be rolled out in the coming months.
The includes a phasing out of the tip credit.
Currently, tipped workers are allowed to be paid $3.93 per hour. (Michigan's current minimum wage is $10.33). This change means the law will soon require that tipped workers be paid the same minimum wage as all other workers.
Also as a result of the same ruling: Michigan's minimum wage will gradually increase — starting at $10.65 next year, then to $12 by 2028 (with future increases for inflation).
One more big change: The ruling means every worker will earn up to 72 hours of paid sick leave moving forward.
This all starts to go in effect on February 21, 2025.
While getting paid more may sound like a good thing, John Sellek, spokesperson for "Save MI Tips" has said this whole thing spells disaster for tipped workers.
"They've been saying for two years, they did not ask for this plan and they do not want it," Sellek said, in an interview with Wrecker over the summer. "You know, servers in their own words say that the tips that they make now will go away, basically. Because once restaurant patrons understand that they're making a full minimum wage, the tip service system that we have now as we know it will go away."
"And that's especially true," Selleck said, "with the pressure that customers are under right now with inflationary costs worse than losing their income is that they think their jobs will be eliminated."
On the other side of the issue stands the group One Fair Wage, which called the Supreme Court ruling a "worker-led victory."
The group, which helped lobby for changes in the law, said around 494,000 Michigan workers will get a raise.
Stay with WWJ Newsradio 950 for the latest updates.