Rep. Outman issued the following statement after the Michigan Supreme Court struck down the state’s current minimum wage law, ordering the elimination of the tip credit for servers, bartenders, and other workers who frequently make more with tips than they would with a higher minimum wage:

“What we can expect as a result of this ruling is everything from reduced employee hours and increased prices to a greater reliance on automation and a move toward self-service. This will not be good for restaurants or their workers. And it’s going to be expensive for families who patronize them as well – as if inflation hasn’t been a hard enough hit to their wallets already.

“That’s why it’s essential that the Legislature get involved. My colleagues on both sides of the aisle must come together to prioritize this issue and find a solution that protects Michigan servers, consumers and businesses.”

A recent survey found that 82% of Michigan restaurant servers wanted to keep the tipping system in place, and 79% worried about losing their job if the tip credit were eliminated. Another recent survey found that two-thirds of restaurant operators expected to lay off employees if the tip credit were eliminated, 94% would raise menu prices, and one in five full-service restaurants would close permanently.

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