LANSING—In a blatant attack on working families, Michigan’s legislature pushed through legislation last Thursday that undermines a landmark state Supreme Court ruling, slashing planned wage increases for over 500,000 workers. The move is seen by labor as a direct betrayal of Michigan’s working class, who have fought tirelessly for fair wages and basic workplace protections.
While the Senate managed to broker a compromise that raises tipped wages to 50% of the minimum wage by 2031, eight Senate Democrats joined Republicans in supporting the bill.
The original 2018 ballot initiatives would have raised the minimum wage to $15, phased out sub-minimum tipped wages, and guaranteed five to nine paid sick days per year. But after the election, the Republican-led House gutted these measures, sparking a legal battle that culminated in the state Supreme Court’s ruling. Now, instead of respecting the court’s decision, lawmakers are doubling down on their anti-worker agenda.
“What does it even mean to be a Democrat if you vote to gut a minimum wage increase that was won in the courts and was just days away from taking effect?” Saru Jayaraman, President of One Fair Wage, asked. “These senators have made their choice—now they will have to answer for it.”
“This is a blatant PAY CUT and betrayal of working people. Michigan workers will remember exactly who stood with them and who sold them out and cut their wages.”
Rob Bieber, president of the Michigan AFL-CIO, called out the legislature’s underhanded tactics. “Six years ago, a Republican majority used unconstitutional tricks to deny workers a pay raise and paid sick leave. Now, they’re trying to pull the rug out from under working families again. Every legislator who votes for this should be held accountable,” he said.
Republican lobbyists and restaurant industry groups have spent the past six months peddling doom-and-gloom predictions, claiming that raising worker pay and guaranteeing a few sick days would “spell disaster” for Michigan businesses. The Michigan Restaurant & Lodging Association, a powerful lobbying group that funneled over $176,000 in political contributions through its PAC last year, has led the charge. They’ve claimed, without hard evidence, that the new rules would “force 20% of the state’s restaurants to close and result in 40,000 to 60,000 lost jobs.”
But these “dire warnings” are nothing more than scare tactics. Seven states, Chicago, and Washington, D.C., have already eliminated their tipped wages, and tipping rates remain near the national average of 19.5%. Restaurants in those states haven’t collapsed—they’ve adapted, just as Michigan businesses can also do, workers said.
The House’s plan, which is even worse for workers, exempts businesses with fewer than 50 employees from sick leave requirements, while the Senate’s version creates a two-tiered system that weakens protections for workers at smaller businesses. These carve-outs are a gift to businesses and their lobbyists, leaving countless workers vulnerable.
“We have to put up with immense amounts of harassment just to secure the tips we need to make ends meet. We deserve to have our wages paid by our employers, not by customers,” said Sam Taub, a server from Hazel Park and organizer with One Fair Wage.
“No matter who you are in this state, you should be able to work one full-time job and make an honest living wage,” said Rep. Donovan McKinney, who represents a primarily working-class Detroit district.
The Michigan AFL-CIO sent a clear message for lawmakers: “No more deals. No more delays. Let the tipped wage and earned sick time laws take effect.”
The Economic Policy Institute estimated that over 563,000 Michigan workers would have earned an additional $1.3 billion annually if the original wage increases took effect. For tipped workers, this would mean an average raise of $6,669—a lifeline for many struggling to make ends meet. Women and people of color, who are disproportionately represented in tipped jobs, would benefit the most.
Michigan workers have waited long enough for fair wages and basic protections. “It’s time for lawmakers to stop siding with corporate lobbyists,” said Laura Dewey, chair of the Michigan District CPUSA, “and start standing with the people they were elected to serve.” The fight for economic justice isn’t over—and workers won’t forget who stood against them.
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