As a new legislative term kicked off today, House Republicans remain steadfast in putting local job providers and their hardworking employees first.

State Reps. Jay DeBoyer (R-Clay Township) and John Roth (R-Interlochen) today introduced legislation that will help bring solutions to a short-sighted Michigan Supreme Court decision from last summer while striking a needed balance between fostering economic growth, protecting livelihoods and preventing mass closures.

“House Republicans were clear that with a Republican majority, the priorities of people we all represent were going to be put first,” DeBoyer said. “We’ve heard from countless hardworking small business owners and their dedicated employees about what this ruling would mean for them. It would be a catastrophe. Many small businesses would close, their employees would be out of work, and the places that remain open would have to significantly raise their prices on people who go out and support businesses in their community, which will lead to an even bigger fight to stay open.

“There is urgency to deliver a solution that respects every side of this equation, and that’s why these are the first bills introduced this year.”

The court’s decision puts unrealistic mandates on small businesses regarding wages and sick leave while phasing out the tip credit, which provides a key source of income for workers and in often cases is more than someone would make with an increased minimum wage – notably in the service industry.

Surveys conducted in the months since the court’s decision underscore the dire circumstances of the changes. Two-thirds of restaurant operators in Michigan expect they’ll have to lay off staff if the court’s mandates go forward, 94% say they’d have to raise menu prices on consumers, and one in five full-service restaurants are projected to close permanently.

With these staggering projections, numerous small business owners and their workers have rallied for a needed middle ground at the state Capitol over the past few months. Unfortunately, no action was taken by Democrats in majority in the last few weeks of the 2023-24 legislative term, leaving livelihoods in limbo.

“House Republicans said we were going to fight for the working class and save our small businesses and tipped wage workers; now we’re delivering on that promise,” Roth said. “The livable wage in Grand Traverse County is around $30 an hour. The average tipped worker in Northern Michigan earns about $29 an hour with tips. If we force these staff to work at $15 an hour, life in our communities will become impossible to afford. They’ll have to sell their homes, take their kids out of school, and uproot their entire lives. But we still have time to fix this. The governor and Senate Majority Leader need to get on board so we can save these folks livelihoods before it’s too late.”