South Michigan News

Rep. Fink has expressed concern following a Michigan Supreme Court decision that invalidated the state's current minimum wage law, including the removal of the tip credit for service industry workers. This change affects servers, bartenders, and other tipped employees who often earn more through tips than they would with an increased minimum wage.

In a statement addressing the ruling's impact, Rep. Fink remarked, "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." He added that many service workers "will undoubtably see their income drop," with some potentially losing their jobs.

Rep. Fink emphasized his commitment to supporting small businesses and workers vital to Michigan's economy. He urged fellow lawmakers to collaborate on amending the law to maintain employment levels and protect economic stability.

Recent surveys highlight concerns within the restaurant industry regarding these changes. A survey indicated that 82% of Michigan restaurant servers prefer retaining the tipping system, while 79% fear job loss if tip credits are abolished. Additionally, two-thirds of restaurant operators anticipate layoffs without tip credits; 94% plan to raise menu prices, and one in five full-service restaurants might close permanently.