Michigan’s minimum wage campaign comes to a halt
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One Fair Wage has announced the suspension of their campaign to eliminate the tip credit for Michiganders.
MID-MICHIGAN (WJRT) – A push to eliminate Michigan’s tipped wage system for restaurant servers has been put on hold.
One Fair Wage, an organization campaigning to create one minimum wage for all Michigan workers, has stopped its efforts to end the tip credit, which allows restaurants to pay servers a lower base wage. Tips make up the difference to meet minimum wage.
“This is something that workers have been vocal about opposing for years. This is something local restaurants have been opposed to for years,” said Rebekah Paxton, research director at the Employment Policies Institute.
One Fair Wage could not be reached for comment about the decision Tuesday.
Paxton explained that ending the tip credit would give workers more consistent and reliable pay, but restaurant owners and industry groups warn it could drive up costs and affect jobs.
“The local restaurant association did a survey of workers who say they actually, with their tips, earn more than the minimum wage per hour. I think it’s nearly 80% of restaurant workers,” Paxton said.
Michigan currently allows a lower base wage for tipped workers. Legal protections ensure workers earn at least minimum wage if their tips fall short.
“We’re hearing from workers that they’re making a lot more than the minimum wage but in the cases that they don’t, there are legal protections to make sure they are at least earning the minimum wage,” said Paxton.
The debate over tipped wages has been playing out across the country. Several states, including California and Washington, D.C., have already moved away from the tip credit system.
