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Despite a decision this summer where the Michigan Supreme Court rebuked state republicans’ efforts to stymy a 2018 ballot measure to raise the minimum wage, some are still fighting against the change — saying that raising wages will be bad for workers.
This summer, the Michigan Supreme Court issued a landmark ruling requiring restaurants to pay their servers minimum wage by 2029, replacing the current subminimum wage of $3.93 an hour for tipped employees.
That would mean payroll for service industry workers would increase drastically, going from just under $4 per hour to at least $15 by 2029.
Members of Save MI Tips, an organization that opposes the change projects the minimum wage to reach closer to $17 or $20, further straining business resources.
The decision has ignited fierce backlash from business owners, leading to organized protests and legal challenges.
The ruling has intensified debate among lawmakers, with the Michigan GOP staging a walkout on the House floor on Friday, demanding discussions to preserve the subminimum tipped wage.
State Rep. Jenn Hill (D) condemned the Republican walkout, stating, “We are here to work together, and I am appalled that they have chosen to leave and not do the work of Michigan.”
The opposition to the ruling extends beyond GOP lawmakers. The Michigan Restaurant and Lodging Association conducted an internal poll suggesting that one in five restaurants could face closure due to the change. However, One Fair Wage, a group advocating for wage reform, has dismissed this claim as unfounded.
“One in five restaurants didn’t close in Minnesota. It didn’t close in Washington, didn’t close in California, didn’t close in these seven states that have already done this,” said David Woodward, senior policy advisor for One Fair Wage.
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The debate has led to tension between organizations advocating for workers’ rights. Spokespeople for Save MI Tips have labeled One Fair Wage a “front group” that does not accurately represent worker sentiments, while both organizations accuse each other of being “Astroturf” organizations.
“It starts to become a partisan football through no fault of the workers,” said John Sellek, spokesperson for Save MI Tips. “They’re just trying to break through. So we’re not interested in a Republican versus Democrat debate that doesn’t do anything for us or the workers.”
Woodward of One Fair Wage challenged claims that the ruling would adversely affect tipping culture, asserting that tips will not disappear. He emphasized that workers would earn more money with “tips on top” contributing positively to the economy.
“Workers are going to earn more money… The restaurants are going to benefit our communities, and the economy is going to strengthen,” said Woodward. “And, we’re going to be healthier because workers will have access to earn paid sick time.”
However, fears persist among servers regarding job security. Sellek highlighted the uncertainty among workers, stating, “Frankly, the saddest part is the fear in some of their own voices. They said, ‘I didn’t have a path to a livable wage until I got this job.’ They take pride in this… Workers didn’t ask for this, and they don’t want it.”
The ongoing conflict is leaving workers caught in the crossfire, with many feeling pressured to choose sides. Woodward of One Fair Wage noted that it has become increasingly difficult for servers and bartenders to advocate for better pay due to fear being instilled by establishment owners and managers regarding job security.
“What you saw last week is a demonstration that’s central to Republicans’ economic development strategies: lowering wages and taking paid sick time away from workers,” said Woodward. “They threw a temper tantrum. They took their paychecks and their benefits and then swore revenge next term. That’s what happened.”
— Dave Woodward, One Fair Wage
Sellek of Save MI Tips highlighted a different perspective.
“The Save My Tips effort has caused the Democrats in the legislature to have to go, ‘Wait a second. This is not as easy as me saying ‘it’s management versus labor’ or ‘it’s unions versus business owners,’” said Sellek. “We represent workers in our districts and they’re showing up at these events going, ‘This is wrong. We don’t want this.’”
As of now, the wage will increase again on January 1, 2025. Organizers with Save MI Tips say they will continue efforts to overturn the court ruling in the new year.
