State Rep. Dave Prestin on Thursday voted in support of House Bills 4001 and 4002, which will restore the tip credit and protect small businesses from intrusive paid sick time mandates. The plan was introduced in response to a Michigan Supreme Court decision from last summer that forced unrealistic rules and expenses on small businesses and restaurants. The bills passed the House with overwhelming bipartisan support.

Prestin has spent his entire professional career engrossed in the service industry. In his late teens and twenties, Prestin served and bartended at local restaurants. Later, he owned and operated a series of independent restaurants across the country. Most recently, he owned and operated a truck stop in Cedar River, which included a full-service restaurant as well.

“I took pride in my properties, the people we employed, and the experiences we provided. But if I were staring down the barrel of these changes without any imminent relief, I would’ve been forced to shut everything down without a second thought,” Prestin said. “It’s simply impossible to take your budget from last year – probably already razor-thin considering inflation right now – throw in a 50% increase in expenses and still expect to operate successfully. Someone would have to get the short stick, whether it be the staff who get laid off, the reduction in product quality, or the massive increase in consumer cost. Without legislative action, independent restaurant and small business owners across Michigan, especially in the U.P., will be forced to make these excruciating decisions or shut down entirely. It cannot be allowed to happen.”

Prestin noted that independent restaurants, smaller operations not supported by larger chains, will feel the brunt of the changes. These operations make up the vast majority of restaurants and the food service industry in the U.P.

HB 4001, passed Thursday, ensures the tip credit is maintained at 38% – protecting the livelihoods of servers, bartenders, and other tipped workers, many of whom make $30 to $40 dollars currently. The bill also guards small businesses from impossible new expenses that were expected should the credit have been phased out.

House Bill 4002 allows workers and small businesses to retain the paid leave options that work for them. The plan also clarifies the looming rules, viewed by many as a one-size-fits-all mandate that is unrealistic and so confusing even lawyers can’t understand.

Both bills now move to the Senate for further consideration.

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