Rep. Fink 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:

“Small businesses across the state and the people they employ are overwhelmed by this ruling. The Michigan Supreme Court’s decision will negatively impact restaurant owners, forcing them to increase their prices just to make ends meet, and some will be forced to close up shop for good. Servers and bartenders, many of whom are still getting back on their feet after executive orders kept them from working during the pandemic, will undoubtably see their income drop. Some will lose their jobs.

“I’m committed to protecting the small businesses and workers who enrich our state’s economy. I hope my colleagues will join with me in working to amend the law to keep workers employed and protect our economy.”

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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