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State Representative Matthew Bierlein has cast his vote in favor of advancing legislation aimed at safeguarding workers and small businesses in Michigan. This move comes after members of the Select Committee on Protecting Michigan Employees and Small Businesses, including Bierlein, heard testimonies concerning the impact of a Michigan Supreme Court ruling from last summer.

"This is the top issue I hear about from people I represent, and that’s been common for many legislators the past few months," said Bierlein. "Small businesses and their hardworking employees are the backbone of our local economies. The hours of testimony that we have had only further reinforce that the Court’s ruling would have a devastating impact on a crucial part of our communities. It’s time for action to ensure that we have a better way forward in Michigan."

The court's decision, set to take effect on February 21, imposes new mandates on small businesses regarding wages and sick leave while eliminating the tip credit system—a significant source of income for service industry workers.

Christina Reynolds, a server with over three decades of experience at Bavarian Inn in Frankenmuth, testified before the committee: "(With the tip credit), I have the flexibility to make as much as the person in front of me has the heart to tip," she said. "It’s really the beauty of the design right now. Let’s put our heads together and be creative to help one group of people that’s asking for help without causing so much harm to another group, because (the court’s decision) would."

Amy Zehnder Grossi, general manager at Bavarian Inn, also shared her concerns: "Losing the tip credit would have devastating effects on our business, our guests and our team members," she stated. "Elimination of the tip credit equates to an over $1 million increase in server payroll. We can’t just absorb that cost."

Marc Owczarzak from O's Pub and Grill echoed these sentiments during his testimony: "Serving is a life skill... Servers consistently work hard to deliver service in order to control the amount of income they make," he explained.

House Bills 4001-02 propose maintaining a 38% tip credit while gradually increasing minimum wage annually. They also redefine employer obligations concerning sick leave by applying them only to entities with 50 or more employees.

Bierlein emphasized Republican efforts towards addressing this issue after Democrats did not pursue related legislation previously.

A survey conducted post-ruling revealed two-thirds of restaurant operators might lay off staff if mandates proceed; 94% foresee price increases for consumers; one-fifth predict potential permanent closures among full-service restaurants.

The proposed bills will now advance for consideration by Michigan's House representatives.