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Rep. Harris: Democrat inaction leaves tipped workers hanging by their fingertips
RELEASE|September 27, 2024
Contact: Mike Harris

State Rep. Mike Harris this week continued to call for action to protect the jobs and paychecks of Oakland County restaurant workers, even as the Democrat-majority House of Representatives declined to address the issue in what may be the chamber’s last meeting until November.

The Democrat majority refused to act Wednesday to restore the tip credit, the adjusted wage that encourages generous tips for restaurant servers and bartenders, after the Michigan Supreme Court eliminated the tipped wage in a July decision. The decision begins to take effect in February 2025, and tipped workers and restaurant operators, concerned that they’ll lose out on tipped income, have been urging the Legislature to restore the tipped wage as soon as possible.

“After a shocking court decision struck down the tipped wage, Michigan servers and bartenders are hanging on by their fingertips,” said Harris, R-Waterford. “They’re raising their voices and telling their representatives how they’ll lose out on income and may lose their jobs. But when lawmakers met this week and had an opportunity to protect the jobs of our restaurant workers, the Democrat majority just left them hanging.”

Harris has stood up for servers and bartenders since the court’s decision, urging a bipartisan solution to keep the tipped wage in place. Harris recently met with local restaurant operators and other business leaders in Waterford to discuss the decision’s impact on wages, as well as paid leave.

“Tipped workers aren’t giving up, and neither am I,” Harris said. “I’ll keep fighting to save the livelihoods of Oakland County servers and bartenders.”

Before the Supreme Court ruling takes effect, tipped workers earn $3.93 per hour plus tips, but never less than the regular minimum wage of $10.33 per hour. The lower tipped wage encourages large tips, and many restaurant workers make as much as $25 or $30 hourly. The Supreme Court decision will eliminate the lower wage and require tipped workers to receive the higher minimum wage plus any tips, although customers are likely to tip less once wages and restaurant prices increase.

A recent survey found that 82% of Michigan restaurant servers wanted to keep the tipping system in place, and 79% worried about losing their job with the tip credit eliminated. Meanwhile, another recent survey found that two-thirds of restaurant operators expected to lay off employees with the tip credit eliminated, 94% would raise menu prices, and one in five full-service restaurants would close permanently.

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