Rep. Ken Borton on Wednesday continued to stand up for Northern Michigan restaurant workers as the House of Representatives convened for session for what may be the last meeting until November.

The Democrat majority refused to act Wednesday to restore the tip credit, the adjusted wage that encourages generous tips for restaurant servers and bartenders, after the Michigan Supreme Court eliminated the tipped wage in a July decision. The decision begins to take effect in February 2025, and tipped workers and restaurant operators, concerned that they’ll lose out on tipped income, have been urging the Legislature to restore the tipped wage as soon as possible.

“Servers and bartenders are facing doom, and now is the time for the Legislature to save their tips and their jobs,” said Borton, R-Gaylord. “Restaurant workers have been pleading for relief. But when the Legislature met today, House Democrats still refused to act. If we don’t find a bipartisan solution soon, many restaurants will close, many restaurant workers will lose their jobs, and others will get paid less. I hope my Democrat colleagues will help us save the jobs and paychecks of hard-working staff at Michigan restaurants and bars.”

Before the Supreme Court ruling takes effect, tipped workers earn $3.93 per hour plus tips, but never less than the regular minimum wage of $10.33 per hour. The lower tipped wage encourages large tips, and many restaurant workers make as much as $25 or $30 hourly. The Supreme Court decision will eliminate the lower wage and require tipped workers to receive the higher minimum wage plus any tips, although customers are likely to tip less once wages and restaurant prices increase.

A recent survey found that 82% of Michigan restaurant servers wanted to keep the tipping system in place, and 79% worried about losing their job with the tip credit eliminated. Meanwhile, another recent survey found that two-thirds of restaurant operators expected to lay off employees with the tip credit eliminated, 94% would raise menu prices, and one in five full-service restaurants would close permanently.