Tri-City Sun

State Representative Bill G. Schuette today criticized a ruling from the Michigan Supreme Court that imposes new mandates on local job providers and phases out a key source of income for workers throughout the state.

“The court’s decision to reverse well-regarded precedent and lower court rulings is another example of the liberal Michigan Supreme Court legislating from the bench in a way that will hurt workers and small businesses in Mid-Michigan. It eliminates practical and critical changes that safeguarded jobs and kept businesses open,” said Schuette, of Midland. “Our local businesses have been through a lot the past few years, from COVID shutdowns to struggling to keep up with costs due to inflation. We should be fostering an environment in Michigan that protects livelihoods and keeps costs lower for consumers. This decision is another step in the wrong direction.”

The decision raises the minimum wage and eventually eliminates the tip credit for servers, bartenders, and other workers who frequently make more with tips than they would through a higher minimum wage. In 2018, the Michigan Legislature took action by adopting two citizen-initiated laws to ensure that a minimum wage increase and new paid sick leave rules worked for all Michiganders. Amendments to these laws struck a balance by fostering economic growth while protecting workers.

A recent survey by the Michigan Restaurant and Lodging Association highlights potential consequences of implementing the original proposal language as mandated by the Supreme Court. More than 92% of restaurants indicated they would be forced to raise their prices, with many anticipating increases of 20-25% by early 2025. Sixty-six percent of restaurant owners stated they would need to lay off employees, and 20% said they might be forced to shut down.

The changes are set to take effect on Feb. 21, 2025. Schuette emphasized the necessity for the Legislature to return to address plans that will prevent widespread layoffs and economic disruption.

“Workers and local job providers are clear where they stand on this,” Schuette said. “The many small businesses and people behind them who will be impacted by this decision are staples of our communities. We should be representing them in Lansing, and it is imperative that we do not delay; it is past time for the majority parties in the Legislature to call us back into session to find a solution that resolves this impending crisis for our state and local economies.”