Servers ask lawmakers to address pending wage increase

GRAND RAPIDS, Mich. (WOOD) — While some servers in West Michigan are pushing back against pending changes to the state’s tipped wage system, some lawmakers say they want the Legislature to address the issue.

As Hailey Jones worked her shifts at Sundance Bar and Grill in downtown Grand Rapids Thursday, she was one of many servers worried about her financial future.

“I’d be making a lot less money and doing the same work, if not more,” Jones said.

In July, the Michigan Supreme Court ruled that it was unconstitutional when the then-Republican-led state Legislature passed a minimum wage and sick leave initiatives — the result of a 2018 petition drive — only to slash them later . The decision means on Feb. 21 of next year, the minimum wage for regular workers will increase to over $12 per hour. The tipped minimum wage, which is currently $3.84, will also gradually increase before being phased out.

“Living on tips is not a sustainable or stable livelihood. What people want is a full minimum wage with tips on top,” Saru Jayaraman, the president of One Fair Wage, the group behind the 2018 ballot initiative.

Not everyone is backing the changes.

“We have to not only increase our wage rates, we’ll have to increase our prices anywhere from 25% to 30%. And by doing so, it’s going to affect the guests coming in,” Spencer Potter, general manager of Uccello’s in Caledonia, said.

Jones believes it will create a domino effect, causing servers like her to get fewer tips that they rely on.

“They’re paying more for their meals in general and they know that we’re getting paid a higher hourly wage, so they’re going to be less inclined to tip,” Jones said.

On Thursday, the group SaveMITips hosted a roundtable at Sundance where servers, service industry leaders and lawmakers discussed the changes. State Rep. Pat Outman, R-Six Lakes, said the meeting reinforced the urgency to get to Lansing to address the issue.

“My preferred method would be to go back to the 2018 legislation,” Outman said. “But there’s probably a middle ground in between there, whatever gets the job done.”

Without speaking specifics, state Rep. Carol Glanville, D-Walker, also said she thinks lawmakers will give the issue a closer look.

“As unfortunate as it may feel, if we hadn’t had the opportunity to have these conversations, we wouldn’t be in a position to improve the industry overall,” Glanville said.

On Thursday, state Sen. Thomas Albert, R-Lowell, said he introduced legislation that would keep the state’s current tipped and minimum wage laws in place.

As concerns continue, Jayaraman said some restaurants or bars are already paying employees a higher hourly wage and it’s had no impact on tips.

“Nobody walks into a restaurant and asks a worker, ‘How much do you earn?’ before they decide how much to tip,” Jayaraman said.

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