In July 2022, a Michigan Court of Claims judge ruled that a 2018 voter-initiated statute (Improved Workforce Opportunity Wage Act) which increases the minimum wage and phases out the “tip credit” in the state, should be restored and take effect immediately and that the amendments made to the statute post-election were no longer in effect.
September 29, 2022
The Restaurant Law Center and the Michigan Restaurant & Lodging Association filed an amicus brief, arguing that the Michigan restaurant industry would be uniquely impacted by a lower court decision that would eliminate the “tip credit”. The court held that the Improved Workforce Opportunity Wage Act was improperly amended by the state legislature during the same legislative session to reinstate the tip credit—after vocal opposition to its abolition from both tipped workers and restaurants. The Michigan legislature has the power to amend voter-initiated laws during the same legislative session, as opposed to voter-adopted laws that must wait until a “subsequent” legislative session to be amended.