LANSING, Mich. — Sen. Thomas Albert on Thursday introduced legislation to prevent thousands of Michiganders from losing their jobs in the restaurant industry and other workplaces statewide.
Albert’s legislation would keep the state’s current laws related to the tipped wage, minimum wage and paid sick leave in place — preventing the implementation of economically disastrous changes outlined by a recent Michigan Supreme Court ruling. Without legislative action, the Supreme Court’s order would take effect early next year.
“Sadly, many restaurants and small businesses across Michigan would not survive the court’s ruling,” said Albert, R-Lowell. “Thousands of people would lose their jobs and inflation-weary customers would face even higher prices. We cannot let that happen, and time is running short to avoid a catastrophe. Democrats must help Republicans enact a solution.”
Albert’s measures would keep the state’s tipped wage at 38% of the minimum wage, continue gradually increasing the minimum wage to $12.05 by 2030, and continue to exempt businesses with fewer than 50 employees from mandatory paid sick leave.
“This legislation puts forward a workable solution by keeping current laws in place — steadily and sustainably raising the minimum wage while protecting jobs in the restaurant industry and other small businesses,” Albert said. “If Democrats have a viable alternative, they should present it sooner rather than later.”
Restaurant owners and employees say eliminating Michigan’s current tipped wage structure would have devastating consequences at a time when many establishments are still recovering from changes sparked by the pandemic. Restaurants forced to pay higher wages on their own would either dramatically raise prices in response or close their doors altogether, unable to afford the higher labor costs. Even servers who keep their jobs may lose income as customers change their tipping habits. The current system works better for servers, who often earn more than the general minimum wage because tips more than make up the difference.
“These liberal progressive policies sound nice in theory but fail in practice,” Albert said. “Just look at the disaster that has unfolded in Washington, D.C. and California with unsustainable changes to the minimum wage. It does not create opportunity — it takes away opportunity. No worker benefits from mandated wage changes if they lose their job as a result.”
The court’s paid sick leave mandates also would disproportionately hurt restaurants and other small businesses, adding to their financial and staffing stress. Workplaces that already have flexible leave time policies combining sick leave with vacation could be forced to separate them to meet sick leave-specific requirements. This could result in less flexibility and overall leave time, hurting employees instead of helping them.
Senate Bills 991 and 992 are expected to be officially read into the record during the next Senate session.
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