State Rep. Mike Harris, R-Waterford, on Wednesday issued the following statement after the Michigan Supreme Court struck down the state’s current minimum wage law, ordering the elimination of the tip credit for servers, bartenders, and other workers who frequently make more with tips than they would with a higher minimum wage:
“This party-line ruling plunges workers and small businesses into a world of chaos. Restaurants and other businesses will have to raise their prices, and the tipped workers who wait tables and mix drinks will wind up with a pay cut — if they don’t lose their jobs. There’s no excuse for delay. The people’s representatives must immediately stand up for the people who are facing financial uncertainty. It’s time to restore the tip credit and provide stability to restaurant workers.”
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 if the tip credit were eliminated. Meanwhile, another recent survey found that two-thirds of restaurant operators expected to lay off employees if the tip credit were eliminated, 94% would raise menu prices, and one in five full-service restaurants would close permanently.
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