Michigan's last-minute pay law shows the fight over tips and wages is getting more complicated
Michigan’s chaotic resolution of a yearslong battle is the latest compromise effort to satisfy workers, employers and consumers in the absence of federal action.
Michigan lawmakers brokered an eleventh-hour deal last week resolving a seven-year fight over what tip earners get paid. But the compromise wasn’t reached until 12 hours after the deadline, and advocates now say workers should get paid for the delay.
The reason for that is complicated, and it caps the latest skirmish in a nationwide battle over minimum wages and tips that experts expect to grind on — in ever more byzantine ways.
“There’s conflicting interests, and the difficulty is negotiating and figuring out who has the power,” said Michael Lynn, a professor of consumer behavior and marketing at Cornell University. “The power is the restaurant industry, and that’s why federal law hasn’t changed.”
All parties appear dug in on the issue, which the ongoing fight against inflation has magnified. Labor advocates and many Democrats want workers to earn higher wages and rely less on gratuities. Business groups and many Republicans want to keep payroll costs and menu prices down. Consumers want to be nagged less to tip.
But for now, Washington doesn’t look eager to mediate.
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