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Michigan’s Tipped Minimum Wage Changes, Explained

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Michigan’s Tipped Minimum Wage Changes, Explained


Major changes are coming for minimum wage workers in Michigan, including those in the restaurant industry who depend on tips.

After a contentious back and forth that dates back to 2018, Michigan lawmakers in February reached a compromise in the state’s tipped minimum wage saga. But the deal didn’t materialize until the Michigan Supreme Court forced Lansing officials to work together. The bipartisan agreement reached in September reduced the increases stipulated in a bill introduced six years ago, and that’s left progressives fuming.

What does this all mean for the tens of thousands of restaurant and bar workers in Michigan who are paid minimum wage? When will key policies take effect? And what’s next for advocates in Michigan and beyond? Eater Detroit has put together this handy guide to help better understand the changes and the next steps in the struggle over how much workers should be paid.

How did we get here?

In 2018, supporters launched a ballot initiative that asked voters whether to raise Michigan’s standard minimum wage from $10.10 an hour to $13.03 an hour and raise the tipped wage to $11.73 an hour starting in 2025. A second petition focused on sick leave.

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The proposal never made it to ballots as conservative lawmakers amended the proposals after adopting the two measures. Years of legal battles followed until July 2024 when the state Supreme Court ruled the moves illegal. In September 2024, in clarifying the gradual elimination of the tipped minimum wage by 2030, the Michigan Supreme Court set the original proposal to become law on Friday, February 21.

Instead, Michigan’s Republican-led legislature, supported by the Michigan Restaurant & Lodging Association, and Democrats came to a compromise that slowed the wage increases. With different business models — for example, counter versus table service, or chain versus independent — restaurants will handle the measure differently.

The move left the progressive lobbying group One Fair Wage and its allies furious.

What is One Fair Wage?

Established in 2019, One Fair Wage is a nationwide grassroots effort that grew out of the worker advocacy group Restaurant Opportunities Center of New York. The phrase began gaining traction as legislation popped up in states before the pandemic with support from progressives including Vermont Sen. Bernie Sanders. One Fair Wage organized in cities across the country and has pressured local lawmakers to take action against the tipped minimum wage, arguing the practice hurt BIPOC workers while pointing toward pay discrepancies. The campaign found success in Chicago, which passed an ordinance in October 2023 to gradually eliminate the tipped minimum wage by 2028.

Lobbying groups, like the Michigan Restaurant & Lodging Association, argued that restaurant owners couldn’t afford to eliminate the tipped minimum wage and that doing so could force restaurants to close. They’ve worked with conservative lawmakers to fight One Fair Wage’s campaign.

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What is the standard minimum wage?

The hourly wage in Michigan is currently $12.48 for adults and $10.61 an hour for minors.

On January 1, 2026, wages will increase by $1.25 for adults, or a 10.2 percent raise, for a standard minimum wage, which will rise to $13.73. Wages will increase again to $15 on January 1, 2027. Starting in 2027, the state will adjust those wages in October based on the rate of inflation. If the unemployment rate is more than 8.5 percent the previous year, pay adjustments due to inflation would be made on January 1 of the following year, according to the Detroit News.

What about the tipped minimum wage?

The tipped minimum wage in Michigan is currently $4.74, or 38 percent of the standard minimum. If a worker does not reach the standard minimum wage with tips during any given shift, employers are required to pay the difference or face fines of up to $2,500. However, the tipped minimum wage also allows workers to potentially earn more than the standard hourly minimum if they receive substantial tips. Progressives argue that eliminating the tipped minimum wage allows for more predictable, fair, and equitable pay, regardless of whether a restaurant is experiencing a slow night.

Under the new law, each year on February 21 until 2031, the rate will rise by 2 percent until it reaches 50 percent of the standard minimum wage.

And what about sick leave?

In addition to increases to the minimum wage, progressives have also campaigned to increase sick time. Michiganders will be able to more broadly accrue paid sick time, earning one hour of compensated leave for every 30 hours of work. Effective Wednesday, October 1, employees who work at businesses with 10 or fewer employees can accrue and use at least 40 hours of paid sick time per year. Starting immediately, workers at larger businesses will be able to accrue and use 72 hours of paid leave a year. Employees can now also carry over up to 72 hours of unused paid sick leave into the new year, with smaller firms required to allow up to 40 hours to carry over from one year to the next.

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So what’s next?

Organizers from One Fair Wage called February’s decision impacting Michigan’s 400,000 tipped workers an attack on their economic security and a betrayal of the Michigan Supreme Court’s ruling.

Looking ahead, One Fair Wage is seeking to place a statewide referendum on ballots to overturn last month’s legislation by mobilizing hundreds of workers and volunteers across the state to collect signatures and bring the issue to a vote.

How do workers feel about all of this?

Workers whose livelihoods depend on tips have mixed feelings about the fight to phase out the tipped minimum wage. While some say that wage increases for Michigan servers could help them take home more money and reduce restaurant turnover, many others worry that they’ll earn less money.

It feels like I’m constantly hearing about tipping lately. Do I still need to tip?

It can feel sometimes as consumers that we’re constantly being hounded to tip at just about every point of sale, or seeing tips or service fees automatically added to higher-end restaurant bills. In some markets, service fees have been popping up to compensate for any lost tippings. Last year, the U.S. saw a widespread movement to eliminate “junk fees” partially in response to this malaise. It’s leaving customers fatigued.

But the bottom line is, yes, of course, continue to tip. The Michigan tipped minimum wage isn’t being completely eliminated. Keep in mind that tipped workers’ incomes are still contingent on customers, at least customers who value good hospitality and want to see their favorite restaurants survive while navigating a hurricane of inflation and rising labor costs.

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Michigan synagogue car-ramming suspect bought $2,000 worth of fireworks before attack

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Michigan synagogue car-ramming suspect bought ,000 worth of fireworks before attack


Two days before federal authorities say Ayman Mohamad Ghazali carried out Thursday’s antisemitic terror attack at a synagogue outside Detroit, the driver in the car-ramming violence allegedly walked out of a fireworks store with more than $2,000 worth of explosives.

Speaking exclusively with NBC News, Phantom Fireworks said that a person who registered as Ayman Ghazali visited one of the company’s Detroit-area stores at 1:39 p.m. March 10 and spent about 45 minutes inside.

Days later, Ghazali allegedly rammed a pickup into Temple Israel in West Bloomfield Township, setting off a fire at the synagogue where a preschool attended by more than 100 children was in session, officials said. None of the children or staff members were injured.

Ghazali, a Dearborn Heights resident, was killed by the synagogue’s security team following the attack.

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The FBI on Friday said that Ghazali was “forensically confirmed” as the assailant. Prior, officials said they believed he was the synagogue attacker, but were awaiting forensics as the driver’s body was badly burned.

Ghazali had no previous criminal history, no registered weapons, and he had never been the subject of a FBI investigation, Jennifer Runyan, the Special Agent in Charge of the Detroit field office, said in a news briefing Friday.

She did not speak on a motive for the attack, but the FBI has previously said it is investigating the incident as a “targeted act of violence against the Jewish community.”

Officials did not mention what caused the fire, but in the vehicle, investigators found multiple gas canisters and consumer mortar tubes that would be used to launch fireworks, according to two senior officials briefed on the investigation.

The fireworks purchase was one of several facts about Ghazali’s background leading up to the attack that came into focus Friday.

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Ghazali, a U.S. citizen originally from Lebanon, lost several family members in an Israeli airstrike in Lebanon last week, according to local officials in Michigan. The strike killed two of his brothers, who were known to be members of Hezbollah, and his niece and nephew, an official told NBC News.

Investigators are looking into Ghazali’s possible ties to suspected members of Hezbollah in Lebanon, according to a source familiar with the matter. He had been questioned several times about these possible contacts upon his return to the U.S. from overseas, the source said.

In recent weeks, hundreds of people in Lebanon have been killed and more than 750,000 people displaced amid escalating Israeli attacks, which were launched after Hezbollah struck Israel in retaliation for the war on Iran.

In Michigan, Alan Zoldan, Phantom Fireworks’ executive vice president, said the store employee who rang up Ghazali’s order recalled that “he certainly had no appearance of nervousness.”

“He was going to be celebrating Eid, you know, the end of the Ramadan,” Zoldan said. Eid al-Fitr, a holiday celebrated by Muslims to mark the end of the fast, is next week.

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Phantom Fireworks said it requires all customers to register their identification before making a purchase. After the synagogue attack, the company found Ghazali’s name and address in its records, which it said federal investigators requested by subpoena.

Video Phantom Fireworks shared with NBC News shows the man who identified himself as Ghazali, 41, walking into the store and registering his identification at the front desk before he starts shopping. About 15 minutes later, he walks up to the register with a mostly full cart, fills out paperwork and begins checking out. Once all the items are scanned and on the counter, he turns the cart around and continues shopping for roughly 5 more minutes.

About 20 minutes later, footage shows the man pushing the cart out of the store to a waiting pickup. He loads the truck bed, hands the cart off to the store employee and drives off.

Ghazali bought roughly 30 different types of items from Phantom Fireworks, including a “finale rack” product that the manufacturer says should be lit with people at least 100 yards away.
Ghazali bought roughly 30 different types of items from Phantom Fireworks, including a “finale rack” product that the company says should be lit with people at least 100 yards away.Courtesy Phantom Fireworks

Ghazali bought roughly 20 types of items from Phantom Fireworks, including a “finale rack” product that the company says should be lit with people at least 100 yards away.

It’s not clear if fireworks purchased from this store were used in the synagogue attack.

The company also said that a $2,000 purchase is not inherently noteworthy.

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“For our, you know, biggest customers that are going big at home — which we have so many of — spending $2,000, $5,000, $10,000 happens repeatedly … $5,000 and $10,000 is actually pretty common,” said Phantom Fireworks vice president Jessi Dragoiu.

Dearborn Heights Mayor Mo Baydoun condemned the attack Friday, saying: “We do know that the individual had recently suffered devastating and personal losses overseas due to an Israeli air strike on his family’s home in Lebanon, leaving two children dead. Grief is real, and it’s heartbreaking, but let me be clear, that is not an excuse.”

Dearborn Heights police chief Michael Guzowski said any relevant records and background information were shared with investigators. He said there’s no credible information indicating an ongoing threat to residents and the city has increased monitoring as a precaution.

In a news briefing on Friday, Michigan Gov. Gretchen Whitmer called the attack an act of antisemitism.

“It was hate, plain and simple,” Whitmer said at the briefing. “We will fight this ancient and rampant evil. We will stand together as we do it, and we will call it out. We must lower the rhetoric in this state and in this country, especially at this moment where we have seen such a rise in anti-Semitism and more attacks on the Jewish community.”

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The Oakland County Sheriff’s Office referred NBC News to the FBI. The FBI declined to comment on this story.



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Michigan basketball has simple objective for 2026 Big Ten Tournament

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Michigan basketball has simple objective for 2026 Big Ten Tournament


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In 2025, the Big Ten Tournament was hugely important for Michigan basketball.

The Wolverines had lost four of their final six regular-season games, falling out of the Big Ten title race in Year 1 of the Dusty May era. Putting together a competent weekend in Indianapolis was critical to take some momentum into the NCAA Tournament.

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2026, however, is different. No. 3 Michigan (29-2, 19-1 Big Ten) was arguably the best team in the nation this season, dominating the Big Ten en route to a league-record 19 wins in conference play and a four-game gap between it and the next closest team.

Michigan has not shied away from discussing its ultimate goal − the national championship − and the Big Ten regular-season title was a key part of that. But what about the league tournament – a potential three games of distraction before the real postseason begins?

“Sometimes there are coaches that discredit the Big Ten tournament,” May said this week. “Whoever wins this tournament this year in what we think is the best league in the country, then we’re going to have a lot of respect for them and the job they did.

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“Because whether they win three games in three days or four games in four days against really good teams, it’s not that simple.”

Michigan intends to be that team. Nimari Burnett demonstrated that this week with a social media post featuring pictures of him cutting down the net in Ann Arbor after U-M’s 90-80 senior day win over MSU, and another with the Big Ten trophy.

His caption? “1 of 3,” with an emoji of a trophy next to it.

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Fellow senior Will Tschetter had the net hanging around his neck on Sunday following the final home game of a five-year career spent entirely in maize and blue. He has been on teams that needed Big Ten tourney runs − like the 2022-23 team that found itself on the wrong side of the bubble after an early loss to Rutgers − but just because U-M has a 1-seed locked up, he won’t mail it in at United Center.

“Our next goal is the Big Ten Tournament,” he said. “We’re turning our head to that, that’s one of our three [primary goals] and so we’ve got to make sure we capitalize on that.”

U-M’s postseason begins on Friday (noon, Big Ten Network) with a third matchup with rival Ohio State, a 72-69 winner over Iowa on Thursday in the third round of the Big Ten tourney. The Wolverines already have two wins over the Buckeyes: a 12-pointer in Ann Arbor in January in which they closed with a 24-12 run, and a 21-pointer in Columbus in February. This will be the eighth season in which U-M and OSU meet three times; the Wolverines have never beaten the Buckeyes three times in a season.

Former Buckeye Roddy Gayle Jr. has taken his game up a level in March − he had a game-clinching block and steal in a tight win over Iowa last week before scoring 15 points (his second-best total this season) against the Spartans last weekend.

Asked about grand goals such as April’s Final Four in Indianapolis, he didn’t even want to look past the next task on U-M’s schedule.

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“Not looking too far past the opponent in front of us, because we know how easy it is for there to be an upset and how frequent it is to be upset, especially in March,” he said. “Being able to play our best ball, that’s something that we’ve been doing and hopefully we can keep it going.”

Michigan will be a 1-seed when the NCAA field of 69 is unveiled Sunday, no matter what happens in the Windy City. Perhaps the Wolverines’ primary focus should be finding new rotations without the services of L.J. Cason (out for the season with an ACL tear) and making sure no one is too worn down for the tournament that truly matters.

And yet, as May has said time and time again, his team is a group of competitors. Playing at half-speed or without full conviction simply isn’t an option.

Once the ball is tipped, his team has one simple objective.

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“We’re going to go compete, we’re going to try to win,” May said. “We’re never going to go to Chicago … and not give our best and compete to win.”

Tony Garcia is the Wolverines beat writer for the Detroit Free Press. Email him at apgarcia@freepress.com and follow him on X at @RealTonyGarcia.





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With gas prices rising in Michigan and U.S., what other items could rise amid war with Iran?

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With gas prices rising in Michigan and U.S., what other items could rise amid war with Iran?


Drivers across Metro Detroit continue to see higher prices at the pump. And the escalating war in Iran is worrying some that higher prices across the board will soon follow. 

“It’s very frustrating because I don’t like these gas prices, and I want them to go down. I hate the war, and I want the war to end,” said Aywon Williams from Detroit.

It now costs an average of over $3.60 for Michigan’s motorists for a gallon of gas, which is around 20%  higher than it was just 12 days ago when the war in Iran began. 

But experts like Kevin Ketels, an associate professor in Global Supply Chain Management at Wayne State, say that the costs of food, housing, clothing, and more should soon be, if not already, on the rise as well. 

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“So there is a very large ripple effect, you simply can’t avoid it when 20 percent of the World’s crude oil comes out of this part of the world,” said Ketels.

Ketels says if crude oil’s price continues to climb because of the Strait of Hormuz being under attack, so will the prices of most widely used products, because of the need for crude oil, which keeps equipment, delivery trucks, airplanes, and more running.

“And that cost is almost immediately being felt by us, by everyone globally and it will be reflected in higher prices in anything that requires transportation,” Ketels said. 

Theo Pinson from Southfield told CBS Detroit he’s seen increasing costs all over the place. 

“Food and everything, I just came over here from Meijer, and everything is sky high,” Pinson said.

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It’s uncertain when the war against Iran will end, but experts say it will take time to smooth out supply chain disruptions, even when it does, so price increases could persist for weeks or even months.

“What’s had to happen in the Middle East is that they’ve had to shut down production because there’s nowhere to put all the oil, so when you shut down production, it takes time to get everything restarted,” said Ketels.

President Trump has said that rising gas prices are a very small price to pay for the U.S., the world and peace. 



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