LANSING — Tipped workers are again making their case to lawmakers ahead of changes to the state’s minimum wage, which are set to go into effect in February without legislative intervention.
A maneuver from the Republican-controlled Legislature in 2018 effectively gutted a citizen-led ballot initiative that would have eliminated the tipped wage by the start of 2024.
The Michigan Supreme Court ruled last year that the Republican reforms were unconstitutional, restoring the initiative to its original form.
Without any intervention, a five-year phaseout of the tipped wage will begin on Feb. 21. That policy will bring the minimum wage to $5.99 immediately, raise the hourly wage to $15 through 2030 and eliminate the tipped wage entirely in 2028.
Northern Michigan servers say the changes would threaten their jobs and the industry as a whole.
While the changes wouldn’t eliminate or prevent tipping, servers say that higher wages could increase management costs, menu prices and result in lower interest in eating out or tipping for quality service.
“I personally am scared that if this change does happen, I’m not going to be able to do this work anymore,” said Pearl Roman, a server at the West End Tavern. “I’m not going to be able to afford to live on minimum wage.”
Michigan’s current hourly wage is $10.56, with the tipped wage at $4.01. Servers say they generally earn more than the hourly wage, and that the capacity for high earnings and scheduling flexibility brings workers into the industry.
“We thrive from our tips,” Roman said. “I feel like going down to minimum wage will just destroy the livelihood of most of us who have worked so hard”
“You’re going to have to pay not only your servers, but your hostesses, everybody in that front of house at $15 an hour,” said Ariel Storm, a server and general manager at The Omelette Shoppe. “That’s a lot of money that that restaurant has to try to incorporate into to stay open.”
Supporters of the tipped wage phaseout say that the changes would provide servers with more consistent earnings and are pushing the Legislature to let the phaseout go into effect.
“It helps reduce the chances for people to just go along with poor treatment in the workplace,” said Sam Taub, a Detroit-area server. “There are so many things servers have to deal with, because they know that if they don’t, they’re not going to get that tip, and if they don’t get that tip, they might not pay their rent.”
Lawmakers will return to Lansing Wednesday, Jan. 8th, with a newly elected Republican majority in the House.
Any changes to the policies would have to be passed by the House and a supermajority of the Democratic-controlled Senate to grant the law immediate effect, which supporters say may be difficult to muster in time.