Lansing Democrats Are Set to Stiff Michigan Waiters

A proposed hike in the minimum wage for tipped employees would drive many out of their jobs

By Thomas McKenna. Excerpts:

"On Jan. 1, Michigan’s minimum wage for tipped workers will rise slightly, to $4.01 an hour from $3.93. Seven weeks later, on Feb. 21, it will leap to $5.99. The tipped minimum will then keep rising until it hits $14.97 in 2030—a 281% increase over five years. In a “tip credit” system, servers in Michigan and 42 other states earn a lower hourly wage to account for tips that make their actual pay much higher. If an employee’s earnings don’t add up to the regular legal minimum, employers must cover the difference.

Progressive activists claim Michigan waiters and bartenders will earn more after the increased minimum wage takes effect, but the hike will spike payroll costs for restaurants and may shrink total earnings for servers. Some say they will have to quit if lawmakers don’t block the increases."

"Even if customers keep tipping the same, businesses would be forced to raise prices, cut hours or even lay employees off to cover the added payroll cost. Restaurants typically run on tight margins. “Everything is on the chopping block,” said Finish Line’s owner, Lisa Slade, 63. “I just hope it doesn’t go through.”"