Capitol News

State Rep. Luke Meerman (R-Coopersville) on Wednesday issued a statement following the Michigan Supreme Court's decision to strike down the state’s current minimum wage law, which mandates the elimination of the tip credit for servers, bartenders, and other tipped workers.

“Activist justices on the Michigan Supreme Court have crossed the line and are legislating from the bench,” Meerman said. “Today’s ruling will have massive consequences on small businesses in West Michigan that will result in layoffs and could lead to the closure of small family-owned businesses.”

In 2018, the Legislature adopted two citizen-initiated laws that increased the minimum wage and introduced a new paid sick leave rule. During that same session, these laws were amended by the Legislature to ensure they aligned with their intended purpose without causing widespread layoffs or shutdowns among Michigan small businesses. Subsequently, progressive groups sued the state, arguing that this "adopt and amend" practice was unconstitutional.

“We’ve seen it before in states like California where wages are set by mandate and the outcome never favors workers,” Meerman stated. “Closures, layoffs, reduced hours and self-serve kiosks are what is to come from the policies behind the so-called ‘adopted and amended’ proposals the Legislature acted upon. This is a strike against the citizen-led Legislature and a tremendous overstep of the judicial branch.”

A recent survey indicated that 82% of Michigan restaurant servers preferred maintaining the tipping system, with 79% expressing concern about job loss if tip credits were removed. Another survey revealed that two-thirds of restaurant operators anticipated employee layoffs if tip credits were eliminated; 94% would raise menu prices, and one in five full-service restaurants would close permanently.

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