Representative Markkanen Says Recent Michigan Supreme Court Decision Could Hurt Service Industry Workers

Representative Greg Markkanen says a recent ruling by the Michigan Supreme Court that will raise the minimum wage and change tip pay for service works will negatively impact small businesses.

In a recent 4-3 decision the Michigan Supreme Court says the state legislature in 2018 unconstitutionally amended and adopted minimum wage and sick leave legislation. The legislation that will bring the state minimum wage up to 12 dollars an hour, says Markkanen, will negatively impact tipped workers such as in the restaurant industry. He adds that a survey conducted by Save MI Tips found that 82 percent of Michigan restaurant servers want to keep the tipping system and 79 percent said they are worried about job security if the tip credit is eliminated.

After the law takes effect in February 2025 minimum wage will come up to 12 dollars an hour in Michigan, while in some industries impacted by tipped wages will gradually rise to the same rate by 2029. Starting in February service workers relying on tips will make 48 percent of the state minimum wage.

Markkanen says that as a result people will be laid off, likely having to move out of state to find work. He and other republican lawmakers have called on the state’s legislature to return to work and address potential issues with the law before taking effect in 2025. Those interested in reading Representative Markkanen’s full statement here.