NEWS RELEASE
OFFICE OF PARKER FAIRBAIRN
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State Rep. Parker Fairbairn on Tuesday urged Senate Democrat leadership to act on House bills that would protect tipped jobs and small businesses.
Action is needed after a Michigan Supreme Court decision invalidated the process by which these issues had been addressed previously, resulting the pending implementation of policy that will result in significant hardship on small businesses and threaten the livelihood of tip-wage workers. Without legislative intervention, the changes will take effect Feb. 21.
“Our tipped workers and small businesses are staring down the barrel of a gun and our Democrat colleagues in the Senate are sitting on their hands,” said Fairbairn, R-Harbor Springs. “We have ten days left before a slow-motion disaster strikes small businesses throughout the state. I can’t believe Senate leadership is so willing to just sit by and watch it happen.”
HB 4001 would ensure the tip credit is maintained at 38 per cent while allowing for reasonable annual minimum wage increases. HB 4002 would allow workers and small businesses to retain the paid leave options that work for them. Both bills passed the House with overwhelming bipartisan support but have been stuck in the Senate for nearly three weeks, without action.
“House Republicans were able to bring thousands of tipped workers and small business owners to Lansing, hear their stories, and then get the bills through both committee and the House all in two weeks,” Fairbairn said. “Three weeks later, the Senate has hardly begun the committee process for their own bills, let alone ours.”
A recent survey by the Michigan Restaurant and Lodging Association found that if the mandates take effect 66 per cent of restaurant owners believe they will be forced to lay off employees, 20 per cent will be forced to shut their doors, and more than 92 per cent of restaurants will be forced to hike prices, with many anticipating increases of 20-25 per cent.
“If we don’t find a solution, Feb. 21 will effectively begin a purge of many tipped workers and small businesses,” Fairbairn said. “Independent restaurants, tipped wage employee positions, and mom-and-pop shops are going to begin disappearing throughout the state. We know Michigan would not be the same without our many unique small businesses, however, Senate Democrats continue to prove they’re all too willing to take the word of some coastal activists while they gamble with peoples’ livelihoods.”
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