State Rep. Brian BeGole, of Antrim Township, issued the following statement after voting in support of bipartisan legislation that safeguards Michigan’s tip credit while allowing for reasonable increases in compensation rates. Senate Bill 8 maintains the tip credit at 38% through 2025 while implementing annual increases, eventually capping at 50% of the minimum wage in 2031:

“I’m pleased we could come to an agreement with the Senate to preserve the tip credit, which serves as a critical source of income for many servers, bartenders, and others, and often allows them to make more than minimum wage. Service industry workers were left with a tremendous amount of uncertainty as to what the Michigan Supreme Court ruling last summer would do to their livelihoods. We heard from many who were worried they were going to lose their jobs, so this legislative agreement is a huge step forward compared to what would happen if the Court’s ruling became effective.

“Additional agreements must happen soon on the paid sick leave portion of the Court’s decision. This confusing, one-size-fits-all mandate for our small businesses – regardless if they have one worker or 1,000 – doesn’t work for Michigan. We need commonsense and cooperation, and I’m hopeful the Senate will join us again in getting needed changes to the governor.”