- Video shows Owner of Robin's Roost, Wendy Kinsora.
- On July 31st, the Michigan Supreme Court ruled that the minimum wage will increase starting next year in February 2025.
- Wendy Kinsora is concerned about how the wage increases will affect tipping.
(The following is a transcription of the full broadcast story)
"It's going to be terrible. It's going to be financial hardship on a lot of people." Restaurant owner, Wendy Kinsora, is talking about a recent Michigan Supreme Court ruling. "I think it's going to be devastating and there's going to be a lot of businesses that close because of this."
Right now, the state minimum wage is about $4 an hour for workers who earn tips. Being able to pay that lower wage is called the "tip credit," because tips make up the difference between $4 an hour and the actual minimum wage. But, with the court ruling, tip credit is set to be phased out in stages, beginning next year, and then eliminated by 2029. That's when restaurants would have to pay workers the full minimum wage.
A ruling that Kinsora thinks will seriously impact spots like Robin's Roost, "I think a lot of people are going to say, 'You know, they're making more hourly. They don't need it.' When you do get tips, it's probably going to be a lot less, because the bill for you to eat out is going to be, probably, twice as much as you're paying now."
Kinsora has concerns about local businesses, including her own. "In order to pay everybody the wages they're expecting us to pay, we're going to have to raise our prices, and eventually, it's going to get to a point where people can't afford to go out."
"It's going to hurt a lot of people. It's going to hurt me, especially. I only have six employees, but I have to pay them all $15 an hour? It's not realistic. It's not," Kinsora continues.
For bartenders, like Jenn Bertke, "Going to a different hourly rate, not only changes how I budget, but it also takes away from my money, because I went above and beyond to learn extras in bartending." Bertke has been bartending for a decade and says she relies on tips. "I spent my time perfecting my craft, so to know I get the same amount of money, even though I've put more time into this, is really disheartening to me."
With a plan to phase out the tip credit by 2029, Kinsora is concerned her employees might not see customers leaving tips in the future. A concern that hits home for many local restaurants.
WATCH: Sarah Poulos covers similar concerns in Holt...
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