State Rep. John Roth today shared deep disappointment and frustration with Democrats in control of the state House after they failed to bring up an important issue affecting the livelihoods of restaurant workers and small business owners in his community.

“It’s bad enough that this issue has been put on hold as the Democrats have enjoyed a months-long summer vacation,” said Roth, R-Interlochen. “Now, when they return to the Capitol to work for one day, they fail to even acknowledge this looming issue.”

In July, the Michigan Supreme Court ruled in favor of raising the minimum wage, including 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. The changes go into effect Feb. 21, 2025 without legislative intervention.

“The clock continues to tick as restaurant workers face potential layoffs in 2025,” Roth said. “We can do something about this, but time is running out. I am disappointed that after an extended vacation, Democrats in leadership chose not to take action that could prevent thousands of Michigan restaurant employees and businesses from suffering at the hands of the Supreme Court decision.

“Our focus should be on our constituents, not the current election cycle. This is about the livelihoods of single working mothers, students working their way through college, small family businesses, and more. I don’t want to see the locally owned restaurants in my communities driven to close their doors forever. It’s time for us to get involved in this before it’s too late.”

During the 2018 session, the Republican-led Legislature adopted two citizen-initiated laws that increased the minimum wage and created a new paid sick leave rule. During the same legislative session, the Legislature then amended those laws to ensure they reflected the purpose of the initiatives and would not result in mass layoffs and shutdowns throughout Michigan small businesses. Later, a collection of progressive groups sued the state, arguing that the “adopt and amend” practice was unconstitutional.

A recent survey by the Michigan Restaurant and Lodging Association illustrates the overwhelming concern that restaurant workers and owners have with eliminating the tip credit:

• 66% of restaurant owners said they would be forced to lay off employees.
• 20% would be forced to shut their doors.
• 42% would be forced to cut operating hours.
• More than 92% of restaurants would be forced to hike prices, with many anticipating increases of 20% to 25% by early 2025.

Roth continues to urge his Democrat colleagues to consider the consequences that are in store for Michigan if the Legislature does not intervene to protect restaurant workers and small businesses.