LANSING, Mich. (Michigan News Source) — Hundreds of Michigan servers and bartenders gathered at the state Capitol on Sept. 18 to voice concerns over pending changes to the tipped wage system, which they say will impact their earnings and the state’s restaurant industry. The rally, organized by the “Save MI Tips” coalition, was sparked by a recent Michigan Supreme Court ruling that will increase the state’s minimum wage and phase out the current tipped wage system by 2030.
Tipped workers—who currently earn $3.93 an hour before tips—will see their base wage rise, starting with a shift to 48% of the state minimum wage by February 2025. The state minimum wage itself will increase to over $10 per hour, factoring in inflation.
Proponents of the change argue that it offers stability in an industry where incomes often fluctuate due to varying customer demand. Yet, the rally made clear that for many servers, this ruling is a threat to their livelihood.
Brandon Brooks, a server from Fennville, told The Steve Gruber Show that the policy will have damaging effects on both workers and the restaurant industry.
“The Democrats are absolutely playing games with this one fair wage thing, which is basically ignoring economic principles,” Brooks said. He pointed out that the policy overlooks how price increases could reduce demand, saying, “As servers, we are salespeople. We make a commission based on our sales. If you’re good, you make 20% … One fair wage takes all the power out of the hands of the consumer.”
Indeed, what Brooks warned of is something larger: a shift that could fundamentally reshape Michigan’s restaurant industry. Some say higher labor costs could force many establishments to raise prices to unsustainable levels or trim their staff, diminishing service quality and reducing dining-out frequency for many consumers. The end result? A hollowed-out industry, where both workers and customers find themselves worse off.
State lawmakers have yet to take definitive action on the issue, though Republican legislators have introduced bills aimed at preserving the current tipped wage structure. Two GOP lawmakers, State Sen. John Damoose (R-Harbor Springs) and State Rep. Angela Rigas (R-Caledonia), spoke at the rally, criticizing the state’s inaction and urging their colleagues to address the potential fallout from the ruling.
Despite the outcry from workers, Democratic leaders have remained relatively quiet on the future of the tipped wage system, leaving its fate in question. The upcoming wage increases, however, will proceed as outlined in the court’s rulings unless further legislative intervention occurs.
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Brooks, who did not vote in the last two elections, said that this issue has prompted him to change his political stance. “I’m voting for Trump now,” Brooks said. “I was leaning towards Robert F. Kennedy Jr., but once he joined Trump, and I started looking at all his economic policies, especially no taxes on tips, Michigan would miss out on that.”
With the clock ticking toward February 2025, when the first changes to the tipped wage will take effect, the rallying cry of “Save MI Tips” remains at the forefront of the conversation, as servers, bartenders, and restaurant owners alike brace for the potential challenges ahead.
“People will either leave Michigan if they want to stay in the industry, or they’ll leave the industry if they want to stay in Michigan,” Brooks said, noting that without changes, the industry could lose experienced professionals across the state.
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