Restaurant Owners and Workers Organize to Battle Michigan Supreme Court Ruling on Wage Hike

The Michigan Supreme Court ruling to increase the state’s minimum wage has sparked resistance from restaurant owners and workers who fear the increase will disrupt their industry. Starting in February, an hourly wage hike and new paid sick leave standards for employees will take effect. This move is anticipated to cause significant shifts in the restaurant industry, prompting concerns among owners and workers about higher costs and potential impact on tips.

The New Wage Hike

By February, the hourly minimum wage in Michigan is expected to reach around $12.50, with a gradual increase anticipated to hit roughly $15 by 2028. For tipped workers, whose current minimum wage stands at $3.93, the lift will see them earning close to $6 per hour. Advocacy groups such as One Fair Wage see this increase as a positive change. However, many industry players in Metro Detroit express fears that the increased labor costs will necessitate hikes in menu prices, which could, in turn, deter customers. The higher menu prices may also lead to less patronage, which may impact servers and bartenders negatively if there is a reduction in tipping.

Save MI Tips: A Unified Front Against Wage Hike Ruling

Save MI Tips, one of the groups opposing the ruling gathered at the Townhouse restaurant in Birmingham to speak out against this issue. They believe that the judgment will lead to employees earning fewer tips. They urged service workers to learn more about the implications of this new policy and to voice out their dissatisfaction by reaching out to government representatives regarding their concerns.

Bartenders Share Their Concerns

Bartenders like Brian Williams from Buffalo Wild Wings in Lake Orion have grave concerns about this ruling. He mentioned that service workers like him might be unaware of the changes set to roll out, with only a few weeks left until its implementation. Kacey Mullins, a fellow bartender, expressed her worries about the perceived disincentivization for patrons to tip, knowing that their salaries would match those of non-service industries. Mullins believes this may reduce the quality of service since employees might feel less motivated due to lower tips.

Case Studies from Other States

The Michigan Restaurant and Lodging Association (MRLA) drew attention to the experiences of other states that had enacted similar wage hike policies, like Washington D.C. John McNamara, the vice president of government affairs for MRLA, mentioned that restaurants in D.C. had been forced to increase their prices significantly after they revoked the tip credit, the lower wage for tipped workers. He believes Michigan may be set for a similar fate, with career servers possibly seeking work in areas where restaurant prices are lower.

Looking Ahead

While opponents of the ruling gather their forces to challenge this policy, organizations like One Fair Wage celebrate the implementation of the wage hike as a victory. A rally organized by the Save MI Tip organization is slated to take place at the Michigan capitol on September 18, underscoring the controversy and interest this ruling has generated. As restaurant owners, workers, and advocacy groups engage in this battle, the future of Michigan’s restaurant industry hangs in the balance.

Author: HERE Novi