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New push to throw out tipped wage in Michigan

New push to throw out tipped wage in Michigan

Yahoo18-06-2025
GRAND RAPIDS, Mich. (WOOD) — The fight over the future of Michigan's minimum wage is back on.
One Fair Wage, part of the ballot committee Voters to Stop Pay Cuts, has helped launch a new referendum effort to increase the minimum wage and get rid of the tipped wage for service industry workers.
'Workers and voters are beyond infuriated,' said Saru Jayaraman, the group's co-founder and president. 'What voters have been saying for over a decade is people in Michigan who work deserve to be paid enough to feed their families, to cover the cost of living. That is not the case right now.'
Gov. Whitmer signs minimum wage and paid sick leave bills into law
The group's original proposal from 2018 was set to become law this February after a Michigan Supreme Court decision. But under heavy pressure from some service industry groups, state lawmakers passed a compromise at the last minute preserving the tipped wage. The minimum wage will still increase $15 by 2027.
'That was a compromise,' said Joshua Lunger, vice president of government affairs for the Grand Rapids Chamber of Commerce. 'It was one of those things where everyone was a little angry. But it was good problem-solving given the realities we had.'
Voters to Stop Pay Cuts submitted voter referendum language to the Board of State Canvassers in hopes of repealing the legislative compromise, Public Act 1 of 2025. If the board approves the petition language in the next few weeks and advocates collect at least 223,000 signatures, the current law would be suspended until voters decide its future on the November 2026 ballot. If that happens, the original minimum wage changes proposed by One Fair Wage could be put in place instead.
'Stop messing with what voters have been asking for for a decade,' Jayaraman said.
Servers cheer Michigan Senate's tipped wage 'compromise'
Lunger said restaurants and other businesses are already adjusting to the new law, which requires most employers to offer more sick time to employees. That comes on top of inflationary pressures, he said.
'We're seeing them struggle and this is another layer on that cakek, that's going to be a burden if it goes forward,' Lunger said.
'We thought we fixed it and we've got to take two steps back,' he added. 'It's very frustrating.'
As the issue comes up again, Lunger expects business owners to be alarmed.
'Businesses love certainty,' Lunger said. 'Individuals love certainty, and we have a very uncertain environment in Michigan right now.'
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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