As the old saying goes, the only things certain in life are death and taxes. Well, in the political world, another thing is certain: politicians will want to increase the minimum wage. And that is certainly true for 2003.
Already this year, two legislators in the Michigan House of Representatives have introduced bills to increase the minimum wage and the tipped employee wage. Earlier this year, state Rep. Jack Minore (D-Flint) introduced House Bill 4165 to increase the state minimum wage from $5.15 to $6.15 on January 1, 2004, and would begin indexing the wage annually to the consumer price index. The bill would also increase the tipped employee wage from $2.65 to an amount equal to half the state minimum wage, which would of course increase as the state minimum wage is annually indexed. Just recently, state Rep. Ken Daniels (D-Detroit) introduced House Bill 5068 to increase the tipped employee wage from $2.65 to $4.65, and House Bill 5069 to increase the state minimum wage to $6.15 on January 1, 2004 and to $7.15 on January 1, 2005.
These bills, if enacted, would constitute a major mandatory increase in the cost of running your business. MRA is ready for the challenge. MRA government affairs and communications personnel have already been busy at work to make sure that during these uncertain and tight economic times, government doesn't impose unnecessary and costly wage increases. One area where we need your help is in educating the media and the public on how the current tipped wage system works.
Although the majority of wait staff earns far more than minimum wage, under state law, no worker ever earns less than the current wage of $5.15. If an employee's tips do not average at least $2.50 per hour, the employer is required to make up the difference to ensure that the employee wages are at least $5.15 per hour.
Discussions have already been held with several leaders in the Michigan Legislature and with reporters in the media to reiterate this message. But this is just the beginning. The MRA will make sure no stone is left unturned in defeating these bills, and we need your help in the fight. Restaurateurs all over Michigan will need to get in contact with their state legislators and inform them how this mandate will cripple not only the foodservice industry, but the economy in general as we try to pick things back up.
