State Representative Bill G. Schuette today criticized a ruling from the Michigan Supreme Court that puts unrealistic mandates on local job providers and phases out a key source of income for workers throughout the state.

“The court’s decision to reverse well-regarded precedent and lower court rulings is another example of the liberal Michigan Supreme Court legislating from the bench in a way that will hurt workers and small businesses in Mid-Michigan. It eliminates practical and critical changes that safeguarded jobs and kept businesses open,” said Schuette, of Midland. “Our local businesses have been through a lot the past few years, from COVID shutdowns to struggling to keep up with costs due to inflation. We should be fostering an environment in Michigan that protects livelihoods and keeps costs lower for consumers. This decision is another step in the wrong direction.”

The decision raises the minimum wage and eventually eliminates the tip credit for servers, bartenders, and other workers who frequently make more with tips than they would through a higher minimum wage. In 2018, the Michigan Legislature took necessary action by adopting two citizen-initiated laws to ensure that a minimum wage increase and new paid sick leave rules worked for all Michiganders. Amendments to these laws struck a balance by fostering economic growth while protecting workers.

A recent survey by the Michigan Restaurant and Lodging Association lays out the dire consequences of pressing forward with the original, extreme proposal language as mandated by the Supreme Court. More than 92% of restaurants said they will be forced to hike their prices, with many anticipating increases of 20-25% by early 2025. Sixty-six percent of restaurant owners said they would be forced to lay off employees, and 20% said they would be forced to shut their doors.

The changes are set to go into effect Feb. 21, 2025. Schuette said it is imperative for the Legislature to return to the Capitol to hammer out plans that will prevent wide-scale layoffs and economic disruption.

“Workers and local job providers are clear where they stand on this,” Schuette said. “The many small businesses and people behind them who will be impacted by this decision are staples of our communities. We should be representing them in Lansing, and it is imperative that we do not delay and it is past time for the majority parties in the Legislature to call us back into session to find a solution that resolves this impending crisis for our state and local economies.”