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This story was produced by My UP News Correspondent Andrew Lorinsor. Find the original story here.
One in five businesses could close as a result of a recent Michigan Supreme Court ruling mandating that restaurants pay servers minimum wage by 2029, according to a spokesperson for the Michigan Restaurant and Lodging Association (MRLA).
A roundtable discussion at Buffalo Wild Wings in Marquette brought together servers, State Rep. Jenn Hill and the organization Save MI Tips to address the ruling.
This conversation comes amid strong opposition to the ruling from the MRLA, which has been hosting similar discussions throughout the state.
At the heart of the debate is the potential impact of the ruling on servers’ livelihoods.
“The background behind our position is twofold,” said John McNamara, Vice President of Government Affairs for the MRLA. “One, 83% of servers have said they want things to remain exactly as they are. They prefer the status quo, enjoy flexibility, and generally earn more than minimum wage.
“So, don’t change it. On the business operations side, if this ruling goes through as proposed, one in five full-service restaurants would close, resulting in about 50,000 job losses. And most of those jobs would be tipped servers.”
The one-in-five figure regarding closures and job losses was calculated from a survey among MRLA members. McNamara also referenced data from Washington, D.C., where similar wage policies have led to job losses and restaurant closures.
Devin Dickerson, a server at Buffalo Wild Wings, shared his concerns about customer service dynamics.
“I’m more concerned about the customer aspect,” said Dickerson. “There has been some lax in how we treat our customer service employees. This could lead to customers feeling more entitled, which may make people apprehensive about continuing to serve.”
Dickerson also emphasized job security issues for his colleagues, many of whom are college students.
“I’ve been here for about three years and have seen many people come and go,” he said. “Some have made careers out of serving, and now their jobs are uncertain.
“Many of my coworkers, who are college students, will graduate and move on to different jobs. But for those who rely on this work, it’s a significant concern. They worry about being able to pay for daycare or support their families financially, as this could ultimately result in them earning less.”
While the discussion featured voices from the restaurant industry and its supporters, the organization One Fair Wage argues that increasing the $3.93 tipped wage will allow hundreds of thousands of Michigan servers to earn a living wage. They contend that a ‘one fair wage’ can lead to improved job stability and satisfaction in the service industry.
As the debate continues, the future of Michigan’s tipping culture and the livelihoods of its servers hang in the balance. Both sides are preparing for further discussions. My UP News will continue to follow this story as it develops.
