Michigan Court of Appeals rejects minimum pay raise for tipped workers
(CBS DETROIT) - A 2018 ballot initiative that would have raised Michigan's minimum wage for workers and tipped workers has been reversed by the state's appeals court.
The three-judge Court of Appeals panel reversed a lower court's decision to allow the minimum wage for workers to be raised to $13.03 and to $11.73 for tipped workers. Some tipped workers said they would rather not get an hourly raise if that means giving up tips.
Bionca King, a waitress at Zoe's Pancake House in Royal Oak, said she hopes the minimum wage for tipped workers doesn't get raised to $11.73. She would rather have low hourly pay and the ability to earn tips.
"That's why I have this job, for the flexibility and the great pay," King said.
Restaurant owners we spoke with said the raise in tipped workers' hourly pay is bad for the industry as a whole.
"It's not good for anybody," said Joe Vicari, president of Joe Vicari Restaurant Group.
Vicari said he was happy to hear about the recent court ruling.
"It's not good for consumers because they will pay 25% more, it's not good for us because we have to pay more wages and it's not good for employees because they don't want it."
More than 75% of tipped workers surveyed said they were against raising their minimum hourly pay, according to a study conducted by the organization, Save Michigan Restaurants.
While the appeals court reversal is good for the industry, it could create an unwanted legal precedent as it relates to ballot initiatives.
"Michigan is one of a handful of states that have a constitutional right to propose an initiative, put it on the ballot and let people vote on it," said attorney Barton Morris, who is working on the case.
The bill in question was passed as a ballot initiative and then implemented with a process called adopt and amend. Morris said ballot initiatives were instrumental in getting marijuana legalized in Michigan. He also said ballot initiatives were important to maintain as a tool for the public to create change and that legislators should not have the ability to negate the voice of voters.
"This is important because legislators can change it with a simple majority, on the other hand, if it's voted by the people, they can't change it without a super majority and have to have a three-quarters majority, and that's why this is really important to understand," Morris said.
This case is expected to be taken up by the Michigan Supreme Court due to the important legal precedent that can be set.
In the meantime, those working in the restaurant industry are optimistic they'll be able to continue making a living.
"It's just not beneficial for me to make $13 per hour in this economy right now, there's just no way," said King.