MUSKEGON, Mich. — Monday morning, dozens of servers and bartenders met at a Buffalo Wild Wings in Muskegon for a round table discussion, voicing concerns about the state increasing the minimum wage for tipped workers, and gradually eliminating the tip credit by 2029.
Following hundreds of servers and bartenders rallying in Lansing back in September, this gathering comes after the Michigan Supreme Court made a ruling in July that will increase the state's minimum wage to $12 an hour in February 2025.
Base pay for tipped workers is currently 38% of Michigan's minimum wage, or $3.93 an hour with tips making up the rest.
The Michigan Department of Labor and Economic Opportunity says the increase included tipped workers, with the minimum wage increasing each year until reaching $15 an hour by 2029, gradually phasing out the state's tip credit.
Servers voiced concerns that people will stop tipping if wages increase.
"Of all the servers that were here today, not one person raised their hands saying that they were in favor of earning simply minimum wage and no tips," said Norma Haveman, a server at a restaurant in Downtown Zeeland, saying many servers make a greater income earning tips than relying solely on a raised minimum wage.
"Full-service restaurants will have to change, perhaps the way that they're done, or the fact that 2 out of 10 restaurants will fail," said Haveman. "We will be losing our restaurant families, whether it be fellow employees or our customers that come in that are part of our community. I see more than just servers and or bartenders losing jobs."
Haveman says she and other servers worry that the increasing minimum wage will cause prices to increase, resulting fewer customers that will impact workers' livelihoods.
State Senator Jon Bumstead for Michigan's 32nd Senate District says the impact on businesses could result in the loss of jobs, with the greatest impact being on the state's rural communities.
"They would rather get tips than the huge increase in the minimum wage because they're going to lose a lot of money, and I think legislators in Lansing need to hear their concerns, and I think we need to address it sooner than later," said Bumstead.
Bumstead says he wants to see changes to the law made before it takes effect.
"I think we just have to listen to these, the workers here, but you also need to listen to the Restaurant and Tourist Association," said Bumstead. "The businesses have to make money and the employees have to make money."
13 ON YOUR SIDE reached out to One Fair Wage, a national organization that has been pushing for an end to all subminimum wages in the U.S. for comment, but have not received a response.
On its website, the organization says having a full minimum wage with tips in addition for workers will improve working conditions across the country.
