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Lansing business adjusts to new minimum wage with second increase coming next month

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  • The first of two minimum wage increases in Michigan took effect on New Year's Day
  • The second wage increase is slated for February 21st
  • Video shows restaurant owner explaining what she's had to cut in order to keep business running and her employees paid

It was an unusually busy Thursdasy night at Tony M's Restaurant & Banquet Hall in Lansing according to owner Tamara Farrell.

Unusual but welcome for Farrell who's working with fewer staff these days.

"I don't employ a dishwasher anymore," Farrell said.

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Tony M's is two days into working under Michigan's new minimum wage increase.

On January 1, the scheduled increase pushed wages to $10.56 and $4.01 for tipped workers.

A second increase happening February 21 would bring wages up to $12.48 an hour with tipped employees making $5.99.

By 2030, workers would be making at least $15 an hour and phase out tipped wages thanks to a Michigan Supreme Court ruling last July.

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"It's a scary time. You just hope that the business comes in and you make the right adjustments.

Farrell says they've adjusted everything from their open and close hours to buying cheaper napkins, a move which saved the restaurant about $1,000 a month according to Farrell.

Next year Farrell is thinking about not putting any Christmas lights up in her restaurant next year because of the cost of her power bill.

"I already know people are struggling. My emploees are struggling with everything raising up," Farrell said. "Every penny counts."

But Farrell is keeping hope on the menu that lawmakers can come up with a way to help businesses like hers.

"I have my fingers crossed," Farrell said. "Everyone in America needs it not just small business owners."

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