South Kent News

State Representative Angela Rigas expressed her concerns following a Michigan Supreme Court decision that will raise the minimum wage and eliminate the tip credit for workers such as servers and bartenders. These changes are set to begin on February 21, 2025.

“Democrats continue to kill Michigan small businesses at a record rate,” said Rigas, R-Caledonia. “First with the pandemic shutdowns, then with historic tax hikes, and now this ruling from a partisan court that will be a death sentence for so many locally owned businesses. Democrats are celebrating this ruling as the right decision for Michigan. Only someone without a basic understanding of economics, capitalism, and prior business experience would praise this ruling.”

The Legislature had previously adopted two citizen-initiated laws in 2018 that increased the minimum wage and introduced a new paid sick leave rule. These laws were later amended by the Legislature to align with their original intent while preventing potential mass layoffs and closures of small businesses across Michigan. However, progressive groups challenged this "adopt and amend" practice as unconstitutional.

“We cannot let these radical changes take effect. If we do, small businesses that have been staples in our communities for generations will be forced to close their doors forever,” Rigas stated. “I worked as a server to pay my way through school. Thousands of young people won’t have that same opportunity if we don’t act. I hope my colleagues on both sides of the aisle can come together and recognize the urgent need to fix this mess. But don’t get me wrong, the radical justices that made this decision are responsible for every single business and job that doesn’t survive this entirely preventable crisis.”

A survey conducted by the Michigan Restaurant and Lodging Association highlights potential impacts if these changes proceed:

- 66% of restaurant owners may need to lay off employees.

- 20% might have to close their establishments.

- 42% could reduce operating hours.

- Over 92% of restaurants would likely increase prices, with some predicting hikes between 20% to 25% by early 2025.

Additionally, another survey revealed that 82% of Michigan restaurant servers prefer maintaining the tipping system, while 79% fear job loss if the tip credit is abolished.