Waiters and waitresses at Michigan restaurants are reportedly worried that a recent state Supreme Court decision could result in cuts to tips.
Tami Jo Schultz has worked various jobs as a waitress for many years and currently works at Hoff Bar & Grill in Free Soil. MLive.com report Thursday.
But she told the outlet she was concerned the transition for tipped minimum wage workers could mean she and about 125,000 other tipped workers could see a significant reduction in the tips they receive.
“I can’t imagine going from $25+ an hour to minimum wage. If everyone is working minimum wage, what’s the point of tipping? Of course it’s a way to show appreciation, but I don’t think it will amount to anything like a tip.”
“My tip averages 25 percent, sometimes more. But if people knew we were all working for minimum wage, I don’t think they would tip 20 percent anymore. I think it would be 5 percent, maybe 10 percent at most.”
According to a report from MLive.com, the minimum wage increase will “phase out the tipped minimum wage by 2029.”
According to Moneywise report Starting Tuesday, Michigan’s minimum wage rise The court ruling would result in a wage of approximately $12.50 per hour in 2025, with a gradual increase to $15.00 per hour over the next few years.
Justin Winslow, president and CEO of the Michigan Restaurant & Lodging Association, said the Supreme Court’s decision could force more than one in five full-service restaurants in the state to permanently close, potentially resulting in the loss of up to 60,000 jobs.
“Today’s callous decision by the Michigan Supreme Court will likely deal an existential blow to Michigan’s restaurant industry and the nearly 500,000 workers it employs,” Winslow said in a statement.
Former President Donald Trump said in June that his administration would repeal the tip tax if elected president in November, Breitbart News reported.
“So this is the first time I’ve ever said this, hotel workers and people who get tipped are going to be very happy, because when I’m in office, I’m not going to tax tips, I’m not going to tax people who get tipped,” he said at a rally in Las Vegas, Nevada.
According to Breitbart News, Trump later left a $500 tip on the bill at Tony & Nick’s Steakhouse in Philadelphia, Pennsylvania, writing “Vote for Trump, no tax on tip.”
Video footage show Trump is seen writing a note as people gather around him.
Vote for Trump—No Tax on Tips!!! pic.twitter.com/IeddHfp9Vm
— Margo Martin (@margommartin) June 22, 2024
“The former president’s promise not to tax tips led to a surge in people writing things like, ‘Vote for Trump means no tax on tips’ on their receipts from restaurants and other places where tips are accepted,” the report said.
