All articles tagged with #tipped workers
Michigan's minimum wage will increase from $12.48 to $13.73 in 2024, with plans to reach $15 by 2027, while tipped workers' wages will also rise, amid ongoing legal and legislative debates that have shaped these changes. The increases aim to benefit low-wage workers but pose challenges for some businesses, especially in the restaurant industry.
Michigan's minimum wage will increase to $13.73 an hour starting Jan. 1, 2026, with further increases planned through 2027 and beyond, as part of the Improved Workforce Opportunity Wage Act, which also adjusts wages for tipped workers and minors, and ties future increases to inflation.
Donald Trump has promised to extend his 2017 tax cuts, which could lower taxes for many Americans but increase the national debt by over $4 trillion in the next decade. His proposals include eliminating taxes on tips and Social Security benefits, which could lead to budgetary challenges and affect Social Security funding. While these cuts may benefit some taxpayers, they could have broader economic implications.
Sen. Ted Cruz has introduced the No Tax on Tips Act to exempt tips from federal income tax, gaining support from several GOP senators. The proposal, which could reduce federal revenues by $150 billion to $250 billion over a decade, faces opposition from some conservatives who question its fairness compared to other low- and medium-wage workers.
The Michigan Supreme Court is considering a case involving the "adopt and amend" strategy used by Republicans in the state legislature to weaken two 2018 ballot initiatives that aimed to increase the minimum wage and require paid sick leave. The court's decision could potentially triple the minimum wage for tipped workers and mandate paid time off for all businesses in the state.
Chicago has become the largest city in the United States to independently require that tipped employees receive a full minimum wage, following a City Council vote. The measure aims to address income inequality and uplift the lowest-paid service workers. Starting next July, the gap between tipped and minimum wages will shrink from 60% to 40%, gradually decreasing until parity is reached by July 2028. While advocates celebrate the move, opponents argue that it could lead to lower wages, higher menu prices, and staff cuts in the service industry.
The Chicago City Council has voted to eliminate subminimum wages for tipped workers, requiring restaurants to pay the city's current minimum wage of $15.80 per hour. The One Fair Wage ordinance, supported by Mayor Brandon Johnson, will gradually increase the minimum wage for tipped workers by 8% annually until 2028. Advocates argue that this change will provide a living wage and address historical inequalities in the restaurant industry, while opponents claim it will reduce profits and worker income. Chicago now joins a growing list of states and cities that have abolished subminimum wages for tipped workers.
A restaurant server in Chicago opposes Mayor Brandon Johnson's proposal to eliminate the subminimum wage for tipped workers, arguing that the current tipping system allows servers to thrive financially. The server points to the negative impact of a similar policy change in Washington, D.C., where many restaurants have replaced tipping with a service charge, resulting in reduced take-home pay for servers and potential closures of establishments. The server urges policymakers to consider the perspectives of tipped workers and engage in a meaningful conversation before implementing changes that may harm their livelihoods.