Michigan’s tipped wage system is set to be phased out next month following a state Supreme Court decision last year mandating higher wages for workers who rely on tips.
The decision has ignited a fierce debate, pitting business owners, workers, and lawmakers against one another. Justin Winslow is the president and CEO of the Michigan Restaurant and Lodging Association. He says servers are currently earning around $30 an hour, with some making even more, under the tipped wage system. He emphasized roughly 80% of these workers want to preserve the current system.
On a positive note, Winslow says bipartisan efforts are in motion, with similar bills from both parties set to be discussed in a hearing this week, to protect tipped wages.
“The new House leadership seems to be making it a real priority to try to get something done in advance of February 21,” Winslow said. “So, we’ll be front and center there making sure they understand and hear from the voices of impacted restaurant workers and restaurant owners.”
The Michigan Restaurant and Lodging Association warns that as many as 50,000 jobs could be in jeopardy if businesses are required to eliminate tipped wages. Supporters of the change argue it ensures fair pay and reduces income instability for tipped employees, who can face unpredictable earnings.
Tipped wages are set to be phased out on February 21.
