Referendum To Restore Wage Increase For Tipped Workers
June 12, 2025

Jessica Mathews / news@whmi.com
The Michigan Board of State Canvassers took the first official step toward advancing a statewide referendum to overturn Senate Bill 8 – the law that stripped away a long-awaited $6.00/hour wage for 400,000 tipped workers.
The proposed referendum, spearheaded by Voters to Stop Pay Cuts, now moves into the signature-gathering phase - aiming to restore the wage increase that Michigan voters approved but the Legislature blocked.
In 2018, the group One Fair Wage collected signatures and won a ballot measure to phase out what was said to be an outdated, two-tiered wage system - “an unfair holdover from slavery that forces tipped workers to rely on tips instead of earning a full, dignified minimum wage”. In 2024, the Michigan Supreme Court ruled that the wage increases should be implemented.
The Legislature stepped in and passed SB 8 - eliminating the raise voters approved. A release states “Cutting wages now—especially for workers already making too little—is cruel, unjust, and economically senseless”.
Under Michigan’s referendum process, voters can suspend newly passed laws by collecting sufficient valid signatures. If the campaign succeeds, SB 8 will be paused and placed on the ballot—giving voters a choice.
Fair wage advocates are now backing a statewide volunteer drive focused on recruiting and training volunteers to join the campaign; coordinating outreach and informing voters about the referendum process; engaging impacted workers and their communities.
One Fair Wage President Saru Jayaraman commented “The Michigan Supreme Court ruled that these wage increases should be implemented, yet lawmakers rolled them back before they even took effect,” said “We’re mobilizing to ensure voters—not politicians—have the ultimate say in whether these protections are upheld.” One Fair Wage is calling on supporters across Michigan to join the effort. More in the provided top link.
The Michigan Restaurant & Lodging Association opposes the referendum effort. President & CEO, Justin Winslow released the following statement:
"PA 1 of 2025 represents that rare outcome voters hope for from their elected officials but rarely experience - a true bipartisan solution in the midst of a polarized environment. This particular diamond in the rough was crafted after extensive input from tens of thousands of Michigan servers, business owners, and community diners ultimately passed by both the Republican-led House and Democratic-led Senate, and signed by Governor Whitmer.
This misguided referendum effort by 'Voters to Stop Pay Cuts' - which is simply One Fair Wage under a new name after repeated national failures and campaign finance violations - would ironically deliver the very pay cuts they claim to oppose. Suspending PA 1 would actually slow Michigan's path to a $15 minimum wage.
After six years of legal uncertainty, our industry finally has clarity and a responsible path forward. Michigan's restaurant workers and operators deserve certainty, not the chaos that would result from suspending thoughtful, bipartisan legislation. We urge voters to decline to sign this irresponsible attempt to undermine worker-focused legislation that reflects the voices of actual Michiganders, not out-of-state interests."
The Employment Policies Institute also spoke out to say “Michigan’s tipped workers have been clear from the start: They don’t want their tipping system to change. Servers and bartenders fought tooth and nail to protect the tip credit and their livelihoods. Reversing workers’ wishes will only subject them to slashed earnings, lost jobs, and closed restaurants.”
EPI further stated “The referendum seeks to overrule the Michigan Legislature’s bipartisan decision to halt a law that would have completely eliminated the tip credit for the state’s servers and bartenders, following testimony from those same workers who opposed tip credit elimination. As a result, compromise legislation held the tip credit to 50% of the statewide minimum wage”.