Michigan restaurants are facing a change in industry regulations that could dramatically change how they operate.
Full-service restaurants in Michigan are nearing a Feb. 19, 2023, date that would eliminate the use of a tip credit, which allows workers to work below the minimum wage if they reach the threshold with tips. The Michigan Court of Claims provided a 205-day delay in August, but multiple restaurant owners told GRBJ it is a disastrous policy change.
Court of Claims Judge Douglas Shaprio wrote legislative change to voter-proposed ballot measures “thwarted the intent of the people.” While workers could benefit from the changes, restauranteurs argue they will be forced to make employment changes because of economic pressures.
The Michigan Restaurant & Lodging Association is working to change the situation before restaurants — and their employees — across the state are left in a pickle. The MRLA believes there could be mass closures and job losses, as well as price increases for consumers.
The MRLA will discuss its plans with local stakeholders at a Dec. 6 luncheon at the Embassy Suites Grand Rapids Downtown, 710 Monroe Ave. NW. RSVPs are required by Tuesday.
There is a Michigan Court of Appeals Hearing set for Dec. 13. If a ruling from earlier this year is not overturned, Michigan minimum wage will jump to $12 and tipped minimum wage will rise to $11.75.
“The Michigan Court of Claims’ Adopt-and-Amend ruling earlier this year caught many by surprise and has had...
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