A new state law which will go in effect in February sounds good at first glance.
However, it will be interesting to see it how everything shakes out on the Leelanau Peninsula.
The law makes two changes to the state’s workplace laws. The law increases the minimum wages for thousands of workers in the state and adjusts the tipped minimum wage paid primary to restaurant servers and bartenders. The second change requires that all employees, including part-time and seasonal, receive one hour of paid medical leave for every 30 hours worked, up to 72 hours annually.
The law could mean more money in the hands of the lowest-wage workers, but business owners warn it could lead to business shutdowns and job losses.
The changes are the outcome of litigation dating back to 2018, when a proposal to eliminate Michigan’s tipped minimum wage was passed by the Republican-led Legislature before it could reach the ballot. Legislators quickly modified the new laws — in a move called “adopt and amend” — amid pressure from business groups and the restaurant industry, significantly paring down the plan. Groups of worker advocates sued, with the case reaching the state Supreme Court in 2023.
The court decision means Michigan’s $10.33 minimum wage will likely climb above $12 next year and continue to rise through 2028, depending on inflation calculations by the state. The tipped minimum wagewill be eliminated by 2029 which has allowed employers to pay tipped employees as little as $3.93 an hour due to so-called “tip credit” where tips fill the gap. Recent economic challenges have resulted in restaurant/bar owners having to increase their prices. Many restaurants have an additional fees on top of the cost of the meal to help offset costs.
Businesses may need to schedule fewer people per shift to keep wages in check. They will also likely need to pass those additional costs onto their guests.
We will be monitoring the minimum wage increase and its impacts on residents, waitstaff and local businesses.
