Tri-City Sun

State Representative Bill G. Schuette convened a committee hearing to address concerns from small business owners and workers regarding an impending Michigan Supreme Court mandate. The hearing was part of the House Republican's efforts to tackle issues affecting the state's economy.

“House Republicans understand the gravity of this issue and what it will do to workers, small businesses and our local economies,” Schuette stated. He emphasized the need for legislative action, highlighting that recent bills aim to address these challenges directly.

Business owners from Midland shared their concerns about the Court’s ruling set to take effect on February 21. The ruling imposes new requirements on wages and sick leave while phasing out the tip credit, a crucial income source for many service industry employees.

Tammy Upchurch, a server at Buffalo Wild Wings in Midland, expressed her apprehension: “This would destroy anybody who is making 30, 40 or 50 dollars an hour sometimes. The wage that we’re being paid is overly compensated by the tips that we make on a daily basis.”

Steve LaLonde of LaLonde’s Market testified alongside his son-in-law Steve MacNellis about their fears for their family business's future due to projected increased expenses of $95,000 resulting from these changes.

“This is not crying wolf. This is real,” LaLonde remarked. He urged consideration of potential negative impacts on small family businesses vital to community support.

Surveys conducted after the Supreme Court decision indicated significant economic repercussions if mandates are enforced. Two-thirds of restaurant operators might lay off staff, while 94% anticipated price hikes for consumers. Additionally, one in five full-service restaurants could face permanent closure.

House Bills 4001 and 4002 aim to balance economic growth with protecting livelihoods by preserving tipped wages and moving toward higher minimum wages without harshly impacting businesses with low staff numbers.

Lisa Hall, Midland County 911 Director, highlighted challenges posed by sick leave mandates on emergency services: “While we recognize and appreciate the intent of the ESTA...it poses significant challenges for emergency response operations.” She warned against last-minute absences causing staffing shortages in critical services.

Schuette reiterated his commitment: “Small businesses employ almost 2 million people in Michigan...I will continue working to ensure hardworking people and their families aren’t devastated by a tone-deaf court ruling.”