Downriver Today

State Representative Jamie Thompson convened a hearing to address concerns from small business owners and workers regarding an impending Michigan Supreme Court mandate. The discussion centered on legislative plans aimed at averting potential economic fallout.

"Workers, small business owners and families are facing a looming cliff if the Legislature does not act," Thompson stated. She emphasized the importance of addressing the testimonies presented, which highlighted potential closures, layoffs, reduced hours, increased prices, and other issues if no legislative action is taken. "House Republicans will continue to lead on this issue, just as was promised to end last term."

Business owners and employees from Monroe and Wayne counties shared their concerns with the Select Committee on Protecting Michigan Employees and Small Businesses. The court's decision, effective February 21, imposes mandates on wages and sick leave while eliminating the tip credit—a significant income source for many service industry workers.

Shadi Ayoub, owner of six Leo’s Coney Island locations in Detroit, recounted his family's journey in the restaurant industry. He advocated for legislative reform of the court's ruling: "It’s very important for people to realize what this industry can really provide for people that are coming up through it."

The committee is considering House Bills 4001 and 4002, which aim to balance economic growth with protecting livelihoods. These bills propose preserving tipped wages while moving toward a higher minimum wage and maintaining current earned sick leave policies.

Thompson noted that House Republicans have prioritized addressing the court's decision after Democrats did not introduce related legislation in the previous term.

A survey conducted post-ruling revealed that two-thirds of Michigan restaurant operators might lay off staff due to these mandates. Additionally, 94% anticipated raising consumer prices significantly, with one in five full-service restaurants potentially closing permanently.