Sturgis-Coldwater News

Sen. Jonathan Lindsey, R-Allen, issued a statement following the Michigan Supreme Court’s “adopt and amend” decision, which is anticipated to result in layoffs and closures within Michigan’s restaurant industry.

“Restaurants are still struggling in the wake of the significant executive overreach during the pandemic, and now the judiciary has handed down another major setback for the industry,” Lindsey said. “This decision will have far-reaching impacts and will directly lead to even higher prices, job losses and even more businesses being forced to close their doors."

Lindsey emphasized that business owners have expressed their inability to operate under new mandates without significant impacts on their operations or employees. He also noted that tipped workers have largely supported the current system.

“Those praising the court decision do so under the guise of ‘people will make more money,’ however it is much more complicated than that — arbitrary mandates on higher wages will do more harm than good," he continued. "Wage mandates will cause a rise in prices and likely less tips for workers — the reality is many will face a reduction in take-home pay or lose their jobs."

Lindsey proposed an alternative approach: eliminating taxes on tips at both federal and state levels. “I believe tipped workers should be able to keep more of what they earn,” he stated. “Instead of this heavy-handed mandate, I support proposals to federally eliminate taxes on tips and have drafted legislation to do the same in Michigan. This would raise wages for employees without overburdening or further driving up costs for Michigan’s businesses.”

He concluded by urging his colleagues to reconvene promptly to address what he described as a significant blow to one of Michigan’s key industries.

“We need to focus more on solutions that make the employees better off by allowing them to keep more of what they earn — my solution is centered around the government taking less,” Lindsey said. “I call on my colleagues to return to Lansing as soon as possible to find a solution.”