Rep. Greg Markkanen says a recent Michigan Supreme Court ruling raising the minimum wage and changing tip payments for service work will negatively impact small businesses.

In a recent 4-3 decision, the Michigan Supreme Court found that the state legislature unconstitutionally amended and passed minimum wage and sick leave laws in 2018. The law, which will raise the state’s minimum wage to $12 an hour, will negatively impact tipped workers, such as those in the food service industry, according to Markkanen. He adds that a survey conducted by Save MI Tips found that 82 percent of restaurant servers in Michigan want to keep the tipping system and 79 percent said they are concerned about their job security if tips are eliminated.

When the law takes effect in February 2025, Michigan’s minimum wage will be $12 an hour, while some tipped industries will gradually increase it to the same rate by 2029. Starting in February, service workers who rely on tips will earn 48 percent of the state’s minimum wage.

Markkanen says this will lead to layoffs and will likely result in people having to move out of state to find jobs. He and other Republican lawmakers have urged the state legislature to get back to work and resolve any potential problems with the bill before it goes into effect in 2025. Those interested can read Rep. Markkanen’s full statement here.