News Photo by Steve Schulwitz Jacob Vought, a waiter at Mango’s Tequila Bar in Alpena, waits on a pair of customers enjoying lunch on Wednesday.

ALPENA — Local restaurants and the employees who depend on tips to help pay their bills are preparing for the implementation of Michigan’s new tipped-wage law next month.

Business owners around the state say the increase in wages will force them to raise prices and tipped workers fear fewer customers will leave tips and they will earn less than they do now.

State legislators are scrambling to amend the law in an effort to ease the financial burden on business owners and tipped workers.

The new law will increase the current tipped wage, which is currently $3.93 an hour, to $5.99 an hour on Feb. 21. The minimum wage for tipped employees will continue to climb each year until it peaks at $11.98 an hour. There will also be increases to the minimum wage for all employees. Next month, Michigan’s minimum wage will climb to $12.48 an hour and increase until it reaches $14.97 an hour in 2028.

The law will also change sick leave in Michigan, as most employees in the state will now be able to accumulate paid sick leave. Each employee would receive one hour of sick leave for every 30 hours they worked.

JJ’s Steak and Pizza House owner John Benson said he already pays his tipped employees more than the state minimum, but he is holding out hope that politicians in Lansing can tweak the law. He said his wait staff is unnerved by the new law because they could see their earnings shrink if people change their tipping habits.

Benson said the increase in the minimum wage overall means that other employees, like cooks, will also see a bump in their pay.

Benson said all businesses are in the same boat and he is trying to be proactive and has been issuing raises before the law takes effect. He said the added expenses to business will force business owners to raise prices.

“We’ve moved everyone up a little bit to try to get out in front of this, but I believe there will be customers who won’t tip the usual 20% anymore, so the waitresses may see a little cut,” he said. “It is going to impact the whole community because we will have to pass on the extra costs onto it.”

Arturo Mendez, owner of Mango’s Tequila Bar in Alpena, said raising prices could have serious consequences. He said if prices go up, it could lead to customers not eating out as often, which means wait staff get fewer tips. He said if prices lead to fewer customers for an extended period, fewer employees would be needed, impacting the local unemployment rate.

“How high can you raise the prices before people stop coming in?” Mendez said. “If no one is coming in, then you don’t need servers and you don’t need cooks. This is going to be a challenge, to be honest.”

Mendez said if waiters and waitresses make less money, he fears it could impact customer service. He said wait staff in most restaurants go the extra mile to accommodate a customer, but if there are fewer tips, the motivation level for them to exceed expectations dips.

Zoe Boyle, a waitress at Mango’s, said she depends on her tips to pay her bills, and losing even a little of them will force her to change how she spends her money. She said the hike to the tipped worker minimum wage could backfire and some people will make less money.

“I think some people will stop tipping because people already complain about tipping,” she said. “With my tips now, I can afford my health care, my rent, my groceries, and take care of myself. If the tips go down, it decreases what we make an hour now and it is less money and it will be harder to live.”

Boyle said if prices of meals go up and customers dine out less, she would also receive few tips, which would also impact her take-home pay.

Traci Boyle, who has been a bartender or waitress for more than three decades, admitted she makes good money. Traci Boyle said the servers work hard for their money and many people don’t realize the hours, stress, and hard work involved.

“I can tell you, as a bartender, I would never put up with the stuff I put up with for minimum wage,” she said. “It is grueling work. You’re on your feet eight to 12 hours, and it is a constant go. It is super stressful and people are constantly demanding and even rude. You deal with a lot of things that aren’t a minimum wage job.”

In 2018, the laws were presented to the state legislature as a result of referendum petitions. The legislature, then controlled by the Republican Party passed the laws with changes that weakened them.

In late July, the Michigan Supreme Court ruled that the change to the laws was unconstitutional and the laws needed to be enacted as originally presented.

Lawmakers from both sides of the aisle have expressed support for changing the laws and Gov. Gretchen Whitmer said she would consider signing a bill that tweaks the wage laws if they came to her desk. New wage laws passed the state senate last year and moved to the House, but they never came to the floor for a vote during the end-of-year lame duck session in December.

State Rep. Cam Cavitt, R-Cheboygan, and state Sen. Michelle Hoitenga, R-Manton, have both said they would support changing the laws to protect small business owners and tipped wage employees.

Steve Schulwitz can be reached at 989-358-5689 or sschulwitz@TheAlpenaNews.com. Follow him on X @ss_alpenanews.com.