Michigan wage campaign stalls
A campaign to eliminate Michigan’s tip credit was suspended this week, meaning tip‑driven pay structures remain intact for now and keeping frontline upsell incentives tied to gratuities. The pause affects local staffing economics and how managers plan labor vs. service expectations. (abc12.com)
One Fair Wage announced it suspended its Michigan referendum push on March 24, 2026 and signaled a shift in tactics toward other ballot efforts rather than meeting the 2026 signature deadline. (abc12.com (abc12.com)) The ballot effort was filed under the name “Voters to Stop Pay Cuts” and sought to repeal Public Act 1 of 2025 by placing referendum language with the Board of State Canvassers. (michigan.gov (michigan.gov)) Organizers needed 223,099 valid signatures by the March 23, 2026 deadline and announced they did not collect enough signatures to qualify for the November 2026 ballot. (michamber.com (michamber.com)) Public Act 1 of 2025 preserved the state’s tip credit while accelerating scheduled minimum‑wage increases, and Michigan’s standard minimum wage was $12.48 per hour as of February 21, 2025 with the tipped minimum at $4.74 per hour under the statute. (jacksonlewis.com (jacksonlewis.com)) The 2025 law sets a path to $15 per hour by 2027 and phases the tipped minimum from 38% toward 50% of the full rate by 2031, a compromise industry groups said provides regulatory clarity while opponents warned a repeal could force price increases, layoffs or automation. (michamber.com (michamber.com)) With the tip credit intact, restaurants can continue lower direct cash wages that industry guides say help manage payroll costs and preserve performance‑linked tip incentives that motivate front‑of‑house upselling and service behaviors. (getknowapp.com (getknowapp.com))
