State lawmakers are expected to debate legislation this week that will be affecting restaurant owners and some workers. Northern Michigan Senator Wayne Schmidt has introduced a bill that could stop a potential big jump in the minimum wage for workers who receive tips. Restaurant owners have been fighting the minimum wage increase. Justin Winslow, president and CEO of the Michigan Restaurant & Lodging Association says the increase could lead to mass layoffs in the service industry.
“Unless this is overturned in a future Court of Appeals hearing, then restaurants are going to see a 206% increase in the minimum wage for tipped employees,” says Winslow. “That’s the biggest crux of the issue, which is actually not great for servers, either, because a lot of them will end up getting laid off and a lot will end up making less money than with the tipped system that exists right now.”
Winslow says it’s important to have the legislature approve the legislation before the new year because the first bills taken up by new lawmakers wouldn’t likely happen until March or April, after the minimum wage is set to go into effect.
