SAVE THE TIP CREDIT IN MICHIGAN

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Restaurant Opportunities Center has now spent over $650,000 to gather signatures for a petition that would eliminate the tip credit in Michigan. In localities with higher wages and no tip credit we are seeing changes to the restaurant industry that are both harmful to restaurant jobs and overall income of tipped workers.

These changes include: Service charge/no tip restaurant models, switching to counter service, downsizing menus and eliminating BOH positions, overall loss of support staff positions, lost hours for tipped employees and large scale restaurant closure. 

The fact remains that it is not Full Service tipped workers who are asking for this change, rather it is third party special interest groups. To show legislators support for the tip credit in Michigan from those most intimately impacted by this ballot initiative, please sign below.

The ballot initiative reads as follows:

The Michigan Minimum Wage Increase Initiative may appear on the ballot in Michigan as an indirect initiated state statute on November 6, 2018.

The measure would increase the state minimum wage from $9.25 in 2018 to $10.00 in 2019; $10.65 in 2020; $11.25 in 2021; and $12.00 in 2022. Starting in 2023, the minimum wage would be adjusted for increases in the consumer price index each year unless the unemployment rate is 8.5 percent or higher for the previous year.[1]

The initiative would increase the minimum wage for tipped employees from 38 percent of the minimum wage to 48 percent in 2019; 60 percent in 2020; 70 percent in 2021; 80 percent in 2022; 90 percent in 2023; and 100 percent in 2024 and thereafter.[1]

The measure would require overtime compensation of 150 percent for employee work in excess of 40 hours during a workweek. The initiative would use different ratios for state law enforcement and fire protection employees (216 hours during a 28-day period or the same 216:28 ratio for a shorter work period) and state hospital and medical institution employees (80 hours during a 14-day period or 8 hours in a workday). Instead of receiving monetary overtime compensation, employees would be allowed to receive compensatory time off.[1]

The initiative would establish a minimum wage of 85 percent of the state minimum wage for employees under the age of 18 ($8.50 in 2019; $9.05 in 2020; $9.56 in 2021; and $10.20 in 2022). Under the measure, employers would be prohibited from terminating or reducing the hours, wages, or benefits of an employee to hire a new employee who is under the age of 18 and who receives the reduced minimum wage.[1]

Text of measure

Petition title

The petition language used for circulation is as follows:[1]


A petition to initiate legislation to increase the minimum wage to $10 per hour on January 1, 2019; to $10.65 per hour on January 1, 2020; to $11.35 per hour on January 1, 2021 and $12 per hour on January 1, 2022; to annually adjust the minimum wage based on the change in the cost of living; to require that gratuities are to be retained by the employee who receives them except as voluntarily shared; and to gradually increase the minimum wage in steps for employees who receive tips or gratuities until it is the same as the minimum wage for other employees. The proposal if adopted would supersede 2014 Public Act 138. If not enacted by the Michigan State Legislature in accordance with the Michigan Constitution of 1963, the proposal is to be voted on at the November 6, 2018 general election.[2]



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