MI Supreme Court decision could impact minimum wage

• The Michigan Supreme Court has until the end of July to rule on a tactic known as 'adopt-and-amend'
• The decision could raise the minimum wage, though it's unclear when those changes would take effect.

A Michigan Supreme Court decision could raise the state's minimum wage after.a ballot initiative for this year's election failed to make the ticket..
A server in one of our neighborhood restaurants, who has spent 26 years in the service industry, says a minimum wage hike would hurt more than help.

She is remaining anonymous after the restaurant declined an on-camera interview to one of its staff.

"I think a lot of servers will end up quitting. I think restaurants are going to start closing," she told Fox 47 News.

In November 2018 voters passed a ballot initiative to increase Michigan's minimum wage to $12 an hour by 2022.

Before it could make it to then-Governor Rick Snyder's desk, legislators changed the ballot initiative to increase wages to $12 an hour by 2030.

Gov. Snyder signed off on the bill and became law in December 2018.

"I think it's a government thing, I think it's politics," the server said.

A case on whether the tactic is unconstitutional is pending a decision in the Michigan Supreme Court.

The Michigan Court of Claims declared 'adopt-and-amend' unconstitutional in July 2022.

The Michigan Court of Appeals ruled in January 2023 that the tactic is constitutional.

The Supreme Court's deadline to rule in on the case is july 31. If it rules the tactic unconstitutional, it's unclear when, if any, minimum wage increases would happen.

Ali Haider, one of the board of directors at the Small Business Association of Michigan, said the increase would make it more expensive to eat out in your neighborhood.

"I think they'd be making more than $13 an hour, Haider said. "The restaurant will be increasing the price menu for that too."

Plaintiffs argued that wages would be around $13 an hour had Republican lawmakers not used 'adopt-and-amend'.

Danny Valle

Haider says believes the way to help people is to focus more on providing opportunities in skills or trades.

If we can add some classes even at the high school level that can teach them basic plumbing, electrician work," Haider said. "I think that will help the economy more than changing the minimum wage."

Minimum wage employees currently make $10.33 an hour while tipped employees make $3.93 an hour.

The service industry has changed since Covid-19. More people are ordering through apps such as Doordash leading to more tips to drivers and more people skipping going to the restaurant.

The server says fewer people are coming in and aren't meeting her gratuity goals. She says she made more off of tips than she from her paychecks.

"Today we were super busy. My sales were good but the tips were not according to the sales," she said. "You still didn't get your 15%."

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