- Video shows the General Manager and servers at Grand River Brewery, in Jackson, expressing continued concern over the minimum wage increased, proposed in the State House.
- House Bill 6057 will keep the tipped wage system currently in place and would increase the minimum wage for servers to $5.70 an hour.
We're at Grand River Brewery in downtown Jackson following up on changes coming to how restaurants servers and bartenders in Michigan earn their living. It all has to do with their tips.
We've been covering this issue quite a bit, but let's get you caught up:
A court ruling calls for the minimum wage to steadily go up, starting next year. A higher wage might sound nice, but we're hearing from restaurant staff, in Jackson, who say they don't want this. Here's why...
Today, the minimum wage for servers is about $4 an hour. Restaurant owners say getting to about $15 an hour in 2030 could force them to increase many prices or even close some restaurants. Servers at Grand River Brewery are worried that customers will limit the tips that servers rely on.
Heather Swann, General Manager at Grand River Brewery, shares, "My first thought was: this could be catastrophic. It's a system that's not broken, so I don't know why we're trying to fix it." Swann says Grand River runs 8-10 servers at a time, and the minimum wage increase would increase what the brewery pays in wages by 250%.
"We can't absorb that cost," says Swann. "That cost would then be implemented into the restaurant menu, and that's where your customers are absorbing that cost."
Sara Russel has served at the brewery for three years. She says, "I think it's going to be devastating to our industry." Russel thinks customers won't tip as much if this goes into effect and says this change would require her to double the amount of hours she works each week to make the wage she makes currently, with tips. "I am in this industry, mainly, because I get to be a mom. I get to be at home with my kids and I get to be a mom."
Swann doesn't want the tip and wage system to change, and says her concerns are for her staff. She says, "If we have to raise our wage and raise our menu prices and add service fees and lay off employees... That's going to be a sad day for Grand River, because we love to take care of our employees. To see them struggle would be a really sad time for us."
With all of that said, there's a possibility all of those changes won't happen, because of a new bill at the State Capitol.
"It is going to cause what I view as a cataclysmic effect with the Michigan business community."
Republican State Representative Graham Filler wants to keep the system similar to what it is now.
So he and Democratic State Representative have a proposed a bill to make that happen.
The bill calls for the tipped wage system to remain and would only increase the minimum wage paid to servers to $5.70, instead of to the full 15 dollars an hour.
"So we view it as a win-win," State Representative Filler said.
I talked with Michigan Restaurant and Lodging Association about this new plan.
"Without passage of this legislation, that will change and it will change their ability to frankly stay employed but if they do stay employed, lower their ceiling of income and we know on the restaurant operator side, those owners are terrified they're going to shut down," Justin Winslow, CEO of Michigan Restaurant and Lodging Association.
But this remains a bill for now. I wanted to find out what kind of chances it has to pass.
I reached out to the Speaker of the House Joe Tate, Senate Majority Leader Winnie Brinks and Governor Gretchen Whitmer about the legislation. Senate Majority Leader Brinks and Governor Whitmer did not respond in time for the story. Speaker Tate said quote 'Discussions regarding potential legislative action on minimum wage and paid sick leave are ongoing.'
Unless it passes, the changes olivia outlined are set to take effect beginning early next year.
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