Rep. Rigas Urges Action to Protect Jobs and Businesses

 

State Representative Angela Rigas made a statement on Wednesday in response to a ruling by the Michigan Supreme Court that will increase the minimum wage and get rid of the tip credit for workers like servers and bartenders, who often make more money from tips than they would with a higher minimum wage. These changes are set to start on February 21, 2025.

Rigas, a Republican from Caledonia, criticized the ruling, saying that it would hurt small businesses in Michigan. She argued that Democrats have already caused problems for small businesses with pandemic shutdowns and tax increases, and now this ruling will make things even worse. She believes that people who support the ruling don't understand how economics and business work.

Back in 2018, the Michigan Legislature passed two laws that raised the minimum wage and created new rules for paid sick leave. However, they later made changes to those laws to prevent mass layoffs and closures of small businesses. Some progressive groups sued the state, claiming that the changes were unconstitutional.

Rigas is worried that if these new wage and tip changes go into effect, many small businesses that have been around for a long time will be forced to close. She pointed out that she worked as a server to pay for her education and that many young people might lose similar opportunities if the law isn't fixed. She urged her fellow lawmakers to work together to address the issue but blamed the court's decision for any businesses and jobs that don't survive this situation.

According to a recent survey by the Michigan Restaurant and Lodging Association, if the 2018 proposals are implemented as planned:

- 66% of restaurant owners say they would have to lay off employees.

- 20% of restaurant owners say they would have to shut down.

- 42% would have to reduce their operating hours.

- Over 92% of restaurants would have to raise prices, with many expecting price increases of 20% to 25% by early 2025.

Another survey found that 82% of Michigan restaurant servers want to keep the tipping system, and 79% are worried about losing their jobs if the tip credit is eliminated.

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