LANSING, Mich. — State Sen. Kevin Daley on Wednesday joined with the Senate Republican caucus in calling upon the governor and Democratic legislative majority to return to Lansing and get serious about saving an estimated 50,000 hospitality industry jobs now in jeopardy following a recent Michigan Supreme Court ruling that will affect the state’s tipped workers.
“We are facing a major economic crisis, yet the Senate has met twice since this ruling was issued — this is not OK,” said Daley, R-Lum. “Thousands of livelihoods are on the line. The people of Michigan are counting on their elected leaders to show up to work and do their jobs.”
In July, the Michigan Supreme Court ruled to eliminate the state’s tip credit system relied upon by thousands of hospitality industry employees to earn above minimum wage. These changes are set to go into effect early next year.
Similar policy enacted in Washington, D.C., in 2023 led to the loss of more than 3,000 jobs. The Michigan Restaurant & Lodging Association estimates that one in every five restaurants would close and between 40,000 and 60,000 jobs will be lost in Michigan if the court ruling goes into effect.
“The devastating impact of historic inflation is still being felt across our state. The last thing anyone can afford right now is a pay cut or job loss,” Daley said. “Republicans have made is clear that we are in Lansing and ready to solve this problem. But we need the governor and Democrats who are in charge of the Legislature to join us. Let’s get to work and save 50,000 good Michigan jobs.”