The Metro: Potential impacts of Michigan’s minimum wage increase

We’re seeing a change in Michigan when it comes to wages. After a six-year battle that involved lawsuits, protests, and an intervention by the state Supreme Court, Michigan will start to raise its minimum wage.

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The goal is to increase the standard to $15 an hour by 2030. But the process — like many things involving politics — was and continues to be contentious. Last week, state House Republicans walked out of their session in protest — seeking a vote on the minimum wage law before it goes into effect next year. 

Critics of the new law argue this change could affect what tipped workers take home and be tough on businesses. They fear customers will tip less and workers could make less money overall. 

Detroit News Restaurant Critic and Reporter Melody Baetens joined The Metro on Monday to help us understand the potential changes coming to worker wages. While minimum wages will change, she thinks the custom of tipping will not shift. 

“The tipping industry in this country is a wild, vast conversation. And I am not sure about this gloom and doom situation where people are going to stop tipping if wages go up,” Baetens said. 

President and CEO of the Michigan Restaurant and Lodging Association Justin Winslow also joined the conversation, saying there are some common misconceptions when it comes to servers’ wages. 

“What I think is often misunderstood, and it takes a while to educate on this, no one’s ever making a sub minimum wage,” Winslow said. “If in the event that tips aren’t making up at least that difference, to get you to whatever the full minimum wage is, you as the employer are responsible to make up that difference every time.”

We also talked to Godwin Ihentuge, chef and owner of  Yum Village in Detroit. His servers make between $12 and $15.50 an hour, depending on training, and tips on top of that.

“Everyone still gets tips. It’s still there. We just find that, and I think as this becomes more public, businesses are going to find that the consumer will support the ethical behavior,” Ihentuge said. “They’ll come, they’ll make their way to the businesses that are deciding to do the right things in an industry that is rooted in and need of desperate change.”

Lu Hayoz, a longtime server and owner of the Peppermill Cafe in Grand Rapids, said a change to minimum wage could be detrimental to her business.  

“We make well above minimum wage. I mean, granted, we make $3.90 an hour, but most of our girls $20, $25 an hour. And we have talked to our customers every single day about what is going to be happening,” Hayoz said. “I am a very small restaurant. You know, just like I said, we’re just a diner open from six to two every day. Everything, our margins are 3-5%, they’re so small. And food cost is sky high right now, sky high.”

In the second hour of The Metro, we asked listeners:

“Do you work in the restaurant industry? Are you worried that as your hourly wage goes up, your tips will go down?” 

Louis from Southfield said: “If I go to a restaurant where I’m a regular and have a relationship with knowing my waitress. She treats me good. She takes care of me. I don’t care what the raises she’s going to get is. I tip her 30% because I’m tipping the person. I’m tipping the friendliness.” 

Use the media player above to hear the full conversation.

More from The Metro on Dec. 16, 2024:

• Kelley Cusmano has been an educator for 19 years, and is currently an English teacher at Rochester High School. She was also named Michigan’s 2024 Teacher of the Year this past summer. In that role, she’s been traveling to different public schools and trying to increase the state’s teacher retention rate. She’s now about halfway done in her role, and Cusmano joined the show to discuss what she’s learned, why teacher retention is an issue, and what makes a great teacher.
• Typewriters were once as ubiquitous as the computer. Now, they’re mainly found on shelves in antique shops and in various states of repair. WDET’s Jack Filbrandt sat down with Chris Alan Jones and Jessica Letkemann, the team behind Detroit Type Works repairing and bringing new life to these beautiful machines. 
• Water is the most basic necessity of life. The rising cost of water has some Michigan families struggling to pay their water bills. In certain households, that results in water shutoffs. A slate of bills in the state  House would address this problem, one that advocates say is a human rights issue at its core. One organization that’s been central to this work is the People’s Water Board Coalition. The Detroit-based group advocates for people’s equitable access to safe water and sanitation. PWBC Director Sylvia Ordunõ joined the show to discuss their efforts.

Listen to The Metro weekdays from 10 a.m. to noon ET on 101.9 FM and streaming on-demand.