(WXYZ) — It's a new year, and that means that minimum wage earners in Michigan will see increases in their paychecks.
There are a couple of important dates to know. The first increase starts today, following the usual rate increase schedule. There is another again on February 21st.
That increase is something many tipped workers have been talking about.
Starting right now, minimum wage workers will be getting just under a quarter more on their hourly wage, and in February, it’ll jump again almost two more dollars an hour.
But some servers and bartenders who are not for this increase say it’ll come at the cost of their tips.
In early December, dozens of servers and bartenders filled the capitol building in Lansing, calling for a stop to the increases.
The new law, going into effect with the new year, increases the minimum wage for all workers from $10.33 an hour to $10.56 an hour today, then that rate will increase again on February 21st to $12.48 an hour.
But servers and bartenders don’t make minimum wage. They make a smaller hourly rate – servers wages – which is supplemented by tips.
This law increases their wages as well and will gradually increase the rate over the next few years until it’s the same hourly rate as minimum wage.
Some of those who took to Lansing in December chanting “save our tips” believe customers will tip less knowing they make more and restaurant prices could increase, saying this is a change they didn’t ask for and one they don’t want.
"My tips are at stake. My livelihood, my life, my well-being, the way I take care of myself, the way I take care of my family is at stake," said Keyonna Caston, a server at Red Robin.
"All of my money, all of my bills, everything I'm saving for and working for all comes from tips, and if I lose that, I lose the ability to pay for my future," said Jordynn Robinson, a hostess at Peppermill in Standale.
The idea stems from the Restaurant Opportunities Centers – originating in New York.
The Director of the Michigan branch gathered petition signatures for the increases here. He says this law will help cut down on employee turnover – since he says most people leave jobs because of low pay.
“So, what we're doing is stabilizing the industry, and we're actually improving the industry by raising the wages because tips are not gonna change. If you're tipping, that waitress makes $3.93 an hour, you're not going to stop tipping if it goes up $2 an hour for the next three or four years," says Chris White, Director of the Restaurant Opportunities Centers of Michigan.
This new law going into effect today does more than increase wages. It also allows employees an hour of sick time for every 30 hours they work, but they can’t earn more than 40 hours of paid sick leave in a year.
