Michigan House Debates Tipped Wage System Overhaul
Michigan House Debates Tipped Wage System Overhaul

Michigan House Debates Tipped Wage System Overhaul

News summary

Michigan's House is debating legislation to maintain the sub-minimum wage system for tipped workers, with the bill receiving bipartisan support as it advances out of committee. Workers like Amy Covert argue that the changes to raise their base pay to the minimum wage by 2030 will reduce their earnings, which now often surpass minimum wage due to tips. This proposed legislation is in response to a Michigan Supreme Court ruling that declared the existing system unconstitutional, requiring a gradual increase in minimum wage and expanded sick leave laws. Restaurant owners fear that increased costs could lead to higher meal prices or closures, while supporters argue it could lead to better wages, as seen in states like California. The Republican-led legislature prioritizes blocking these changes to protect jobs and business viability. The debate continues with further testimonies and discussions planned in the coming weeks.

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