SOUTHFIELD, Mich. (WXYZ) — The Michigan state Senate passed a bill Thursday night to delay a change to tipped worker wages as time was running out.
Michigan's new tipped wage system, sick leave laws and minimum wage are set to take effect next Friday. But a bill now before the House would start the new $15 an hour minimum wage in 2027, a year sooner than called for under Michigan's new law.
There’s been concerns that the legislation will negatively affect tipped workers.
Previous coverage: Restaurants begin implementing service charges preparing for tipped wage hike
Today I traveled from Southfield to Sterling Heights to speak with a waitress, a restaurant owner and a lawmaker about what they hope to see from Michigan moving forward.
Mauro Querio, the owner of Mangiabevi Urban Italian in Sterling Heights, has been in the restaurant for 40 years.
“I've been in the restaurant business since I was 17 years old. Been running restaurants since I came to this country,” Querio said. “The increase of the wages for tipped workers, I don’t think, honestly in my opinion, it’s a good idea. No one wants it.”
Querio says he fears many restaurants will struggle to survive with added costs and wait staff could lose out if customers stop tipping. He says some places could cut corners elsewhere to cover costs.
“That's something else that scares me is the quality of the food. So the price is going to increase and you're going to start buying cheap quality crap to be able to make a profit because the profit starts getting lower and lower and lower,” Querio said.
The bill would leave the tipped credit at 38% of the minimum wage for the remainder of 2025 then gradually increase before capping at 50% over six years.
Previous coverage: Servers, bartenders pack Michigan Capitol to 'save the tipping system'
The House will take up the Senate's amendments next week. If passed, it goes to Gov. Gretchen Whitmer’s desk for her signature.
At Martin’s Coney Island at 10 Mile and Lahser roads in Southfield, waitress Kristal Hunt is also concerned about potential for losing money.
“It’s how I make money is based on tips because the pay check is very small. So if they're paying us more, then people will expect to not tip I'm assuming, so I’m worried I won’t be waitressing in the future because of this,” Hunt said.
Supporters like state Sen. Joe Bellino, R-Monroe, say this proposal is a better compromise and will serve as an important benefit for those who’ve been kept from achieving a minimum wage.
“We made some changes, got together with Democrats and made a compromise,” Bellino said.
He says a more drastic alternative plan would’ve cost more jobs.
“If this decree from the state Supreme Court would have taken effect next week, the 21st of February, we estimated 50,000 restaurant workers and hospitality workers would lose their jobs." Bellino said. "And we're looking at stats in California and D.C., where they implemented this, and a lot of restaurants went out of business.”
Many are continuing to track developments. As far as this proposal, both owners and staff told me this will have a major impact.
