LANSING, Mich. (Michigan News Source) – A Michigan Supreme Court ruling which found the 2018 Legislature’s “adopt and amend” strategy unconstitutional has triggered a minimum wage increase, elimination of the tip credit, and creation of a new paid sick leave policy come February 2025.

Breaking down the ruling.

The justices 4-3 ruling states that the Michigan Legislature acted unconstitutionally when it killed two ballot initiatives and instead adopted the measures before the 2018 election. Afterwards, critics say the Legislature watered-down the original intent of the ballot initiatives.

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Dissenting Justices Elizabeth Clement, Brian Zahra, and David Viviano acknowledged why people might be frustrated over the Legislature’s actions. They wrote, “This is not to say that the Legislature acted honorably or uprightly by doing so; it is only to say that the Legislature did not act unconstitutionally” and pointed out lawmakers “[enacted] laws proposed by initiative petition to avoid ballot approval only to substantially alter them in the same legislative session.”

Lavora Barnes, Chair of the Michigan Democratic Party, stuck to party lines when it came to responding to the Supreme Court’s decision. “This ruling makes it clear — Republicans in the legislature have no business overthrowing the will of the voters. Decisions like these underscore how impactful our state Supreme Court is — and they remind us of the importance of electing judges who will uphold our democracy.”

How will it impact Michigan restaurants and employees?

However, it won’t be business as usual when it comes to Michigan restaurants. Wendy Block with the Michigan Chamber of Commerce called the ruling “pure judicial activism” and said the ruling will hurt businesses and workers.

“It’s hard to imagine how businesses will absorb a large increase like the one the Supreme Court required,” Block said. She continued, saying this decision already puts a strain on struggling restaurants who are still reeling from Gov. Gretchen Whitmer’s arbitrary COVID-19 shutdowns in 2020 and 2021.

“How will they do that without raising menu prices, cutting back on hours, cutting back on employees?” Block said on The Steve Gruber Show on Thursday. “There are going to be situations where restaurants can’t make the numbers work and they’re going to shut their doors completely.”

Block said the Chamber is exploring how the House and Senate can decrease the chaos for the industry. Justin Winslow, President and CEO of the Michigan Restaurant and Lodging Association, discussed the trepidation that restaurant owners are experiencing following the Supreme Court decision.

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The Iron Pig Smokehouse in Gaylord, whose owner kept indoor dining going during Gov. Whitmer’s COVID-19 shutdowns, said it will be a “tough transition over the next 200 days.”

 

 

What’s next?

Republicans in the Michigan Legislature are calling on their Democratic colleagues to get back to work and help ease the transition for businesses. State Rep. Mike Harris (R-Waterford), said the ruling will plunge Michigan’s workers and small businesses “into a world of chaos” and called on his fellow legislators to act quickly.

“Restaurants and other businesses will have to raise their prices, and the tipped workers who wait tables and mix drinks will wind up with a pay cut — if they don’t lose their jobs.” Harris continued,  “The people’s representatives must immediately stand up for the people who are facing financial uncertainty. It’s time to restore the tip credit and provide stability to restaurant workers.”

State Rep. John Roth (R-Interlochen) said, “This ruling just started the countdown on a ticking time bomb within our restaurant industry. If these changes are allowed to stand, locally owned restaurants we’ve been bringing our families to for generations will close their doors forever. We can’t let that happen,” Roth said.

The ruling has ramifications for Michigan’s tourism industry as well. Rep. Ken Borton (R-Gaylord) boasted that Northern Michigan’s “unique restaurants” that are part of people’s road trips to the state are in jeopardy.

“People won’t vacation in Michigan if the only restaurant left is McDonalds,” Borton said.