COMSTOCK PARK, Mich. — A minimum wage and tipped minimum wage spike in Michigan is now on pause after a court ruling.
The increases would've taken effect on Feb. 19.
A restaurant owner in Comstock Park is praising the decision as it means the minimum wage and tipped minimum wage will remain unchanged, which will allow most restaurants in the area to be able to stay in business.
The Michigan Court of Appeals (C.O.A.) issued a ruling Thursday from a December 13th hearing in the case: Mothering Justice v Attorney General.
In 2018, The Michigan legislature adopted two citizen-initiated petitions. One would allow voters to raise the minimum wage to $13.03 an hour and tipped worker wages to $11.73 per hour in 2023.
The second petition dealt with sick leave.
The Republican-controlled legislature then amended these petitions in the same legislative session which then in July, the Michigan Court of Claims ruled this action unconstitutional.
An appeal was then filed to the C.O.A.
The C.O.A. ruled Thursday this was in fact, constitutional.
So now the minimum wage will remain at $10.10 per hour and tipped minimum wage will remain at $3.84.
There are also no changes to the paid sick leave requirements, much to the delight of the Michigan Restaurant and Lodging Association which states those in the restaurant and hospitality industry can now breathe a sigh of relief as they've struggled through the pandemic and rising inflation.
"Our own research shows that 1 in 6 restaurants were going to close if this was going to go into effect in February because of the drastic wage increase so fast. And about 50,000 restaurant jobs were at risk as well," said Justin Winslow, the association's President & CEO.
Maricela Gutierrez, Co-organizing Director at One Fair Wage, sent the following statement to 13 ON YOUR SIDE:
"We will continue fighting for workers all the way to the Supreme Court. This only makes it so that we raise our voices higher, alongside the thousands and thousands of low-wage workers who were just undermined by this decision from the MI Court of Appeals. It’s insane that workers are earning $3/hr in MI and that employers get to use workers’ tips to subsidize poverty wages. Low-wage workers won’t stop fighting until this legacy of slavery is demolished, and until we all get One Fair Wage."
"It has been weighing on us. Waiting to hear what was going to happen," said Chef Jenna Arcidiacono, owner of Amore Trattoria Italiana on Alpine in Comstock Park, who employs between ten and 20 front of house servers. "Servers would probably leave because that would mean they were making much less than they normally make."
One Fair Wage said there's no question they'll appeal this decision and take the case to the Michigan Supreme Court.
"Unfortunately not everyone loves our tipping rules in America, but I think it's kind of engrained in our society now and I think it would be hard to change it right now," said Arcidiacono.
As she waits to see what will happen next, Arcidiacono hopes the community will continue to support small, family-owned and operated restaurants.
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