State Rep. David Martin is working alongside his House Republican colleagues to tackle one of the most pressing issues facing Michigan’s economy: the fallout from last summer’s Michigan Supreme Court decision that jeopardizes small businesses, tipped wage workers, and local communities.

Martin, R-Davison, co-sponsored new legislation introduced this week to address the court’s ruling. The decision, set to take effect on Feb. 21, imposes unrealistic wage and sick leave mandates on small businesses and phases out the tip credit, which is a critical source of income for workers in the service industry.

“This is the biggest issue facing our state right now, and House Republicans are stepping up to lead where others have failed,” Martin said. “Last year, Democrats had every opportunity to address this crisis, yet they sat on their hands, leaving Michigan’s small businesses and workers in limbo. Republicans promised to prioritize real solutions, and today, we’re delivering on that promise.”

The Supreme Court’s decision has left small business owners and their employees bracing for catastrophic consequences. Surveys show that two-thirds of Michigan restaurant operators expect they will need to lay off staff if the mandates are implemented. Additionally, 94% of businesses anticipate significant price hikes for consumers, and one in five full-service restaurants could close permanently.

“This ruling threatens the livelihoods of small business owners as well as every hardworking individual who relies on tipped wages,” Martin said. “The data is clear: tipped workers often earn more with tips than they would under the proposed wage increase. We cannot force them into a system that hurts their ability to make a living and upends their lives.”

The legislation introduced today aims to strike a balance between protecting workers’ incomes, preserving small businesses, and fostering economic growth. By acting quickly, House Republicans hope to avert a crisis that could result in mass closures, job losses, and skyrocketing costs for consumers.

“Promises made, promises kept,” Martin said. “Republicans said we’d stand with workers and small businesses, and now we’re delivering. I call on the governor and Senate Majority Leader to join us in fixing this before it’s too late.”

###