Michigan restaurants prepare for pay increases for workers with new laws

The proprietor of Brady’s Tavern is aware of the difficulties facing the hospitality sector. However, this businessman is certain that he will soon find a new location, which is why he is also worried about the effects of raising the minimum wage on the restaurant sector.

DETROIT (FOX 2):It’s a terrific way to start the new year for a lot of employees. In 2025, Michigan’s minimum wage will rise twice.

However, others in the hospitality sector are opposing the rise because they believe it can have more negative effects than positive ones.

The proprietor of Brady’s Tavern is aware of the difficulties facing the hospitality sector.

We were unable to renegotiate the lease. For financial reasons, we’re closing,” owner Bob Berg stated.

The business owner is worried about how raising the minimum wage will affect the restaurant industry since he is certain that he will soon find a new site.

“It would overtime become a burden, something that we would have to address in the form of menu price increases,” he stated.

At the moment, the minimum wage in the state is $10.33. However, it will rise to $10.56 on January 1, 2025, and to $12.48 on February 21 of the following year.

However, Save MI Tips wants to exclude tipped workers from consideration of raising the minimum wage.

“We re asking the legislature to step in and make an adjustment for tipped workers, only leave the regular minimum wage alone; it can go up as the law prescribes,” John Sellek of Save MI Tips stated.

Since they claim that their gratuities enable them to earn more than a minimum wage job, many tipped workers are opposed to minimum wage positions.

“They do this unique line of work where they have an arrangement with the customer where their ability to deliver good service can result in making double or triple the minimum wage,” Sellek stated.

Many claim to want the law and the governor. More needs to be done by manufacturers to safeguard tipped workers.

“To get this vote up on the board in the legislature, we only need the governor and legislative leadership. We can address this before it’s fully implemented in February, and once it’s permitted to go on the board, we anticipate it will pass easily,” Sellek stated.

Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates, feel free to reach out to us via email. We appreciate your trust and support!