Michigan’s minimum and tipped minimum wages are both set to increase in 2023, while pending litigation could cause even more significant changes for the hospitality industry that proponents say are overdue and some operators fear.
Under the state Improved Workforce Opportunity Wage Act of 2018, Michigan’s minimum wage is set to increase from $9.87 to $10.10 per hour on Jan. 1, while the tipped minimum wage will increase from $3.75 to $3.84 per hour.
The voter-initiated law initially sought to raise Michigan’s minimum wage to $12 an hour by 2022 and eliminate the tipped minimum wage in 2024. However, the Republican-led Legislature in 2018 used a controversial “adopt and amend” strategy to water down the legislation and stall the increases for both wage structures.
A July 2022 Court of Claims ruling voided the Legislature’s amended version of the Wage Act, but then subsequently ordered a delay of the decision until Feb. 19, 2023, to give employers and state agencies more time to adjust to the new requirements. Absent a court ruling halting the Court of Claims decision, the minimum wage will increase to $13.03 in February 2023 and increase to $11.73 for tipped employees.
Lucas Grill, who owns the 1983 Restaurants LLC group that operates multiple restaurants in Holland, supports raising the minimum wage, but not the tipped wage.
He says the restaurant industry is unique, and a ruling eliminating tipped wages would upend the entire sector.
“To give workers more in their pockets...
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