Chair of the Board: Stronger Together
By: Paul Wegert | October 2024
The hospitality industry is the sum of its parts. From bars to B&Bs, restaurants to resorts, and steakhouses to spas, we all benefit from the success of our fellow members of the Michigan. In fact, Michigan hospitality thrives on the synergy between hotels and restaurants, working together to make our state a renowned, welcoming destination for visitors and residents alike.
As a lifelong hotelier, I can attest that our lodging businesses are stronger when surrounded by flourishing restaurants and a lively entertainment scene.
Lately, I’ve been concerned by a series of impending policy changes that could destabilize the hospitality industry and threaten the balance Michigan restaurants and hotels have worked so hard to achieve after the pandemic. On July 31, the state’s highest court released a ruling that triggered the repeal of Michigan’s laws governing paid sick leave and minimum wage, as well as the restaurant industry’s tip credit, and ushered back two new laws that would increase the minimum wage, expand paid sick leave mandates, and phase out the tip credit.
Repealing the tip credit and implementing a more restrictive paid sick leave mandate will measurably cripple our survival as an industry. Without the tip credit, 1 in 5 full-service restaurants will not survive, and approximately 60,000 jobs (mostly server jobs) will disappear. This would not only be devastating to our industry, it also would hurt our communities, limit options for travelers, and make it impossible to maintain the standards of excellence that we in hospitality strive to uphold.
These changes seem positive at face value; however, those of us who have made hospitality our life’s work know that these changes don’t reflect the real needs of businesses or benefit our workers.
However, the silver lining is that the Michigan Supreme Court has granted the state legislature the ability to amend these laws, and the MRLA is spearheading the effort to protect our businesses from some of the most harmful aspects. We are advocating to save the tip credit, and we will also be advocating for commonsense reforms to the paid sick leave law, which in its current form lacks flexibility and will disproportionately harm small businesses. These changes will save tens of thousands of hospitality jobs and keep our industry alive.
But we can’t do this alone. It’s an all-hands-on-deck moment for our industry, and the MRLA needs the support of its members – both hotels and restaurants. Membership is essential in giving us the influence to protect our businesses and employees, and by joining the MRLA, you directly contribute to the preservation and growth of Michigan hospitality. But there are other, simpler ways to get involved. You can order table tents, created by the MRLA, to display on your front desk, deli counter, or dining room tables and spread the word to the public about the impact of losing the tip credit. As of writing, the MRLA has shipped over 10,000 table tents, and the word is getting out: more and more Michiganders are realizing what would happen to our restaurants and hotels without the tip credit!
Together, I believe we can secure a future in which our hotels remain places of relaxation and comfort, our restaurants can still serve fantastic meals and moments of connection, and our businesses stay competitive, strong, and sustainable.
As a lifelong hotelier, I can attest that our lodging businesses are stronger when surrounded by flourishing restaurants and a lively entertainment scene.
Lately, I’ve been concerned by a series of impending policy changes that could destabilize the hospitality industry and threaten the balance Michigan restaurants and hotels have worked so hard to achieve after the pandemic. On July 31, the state’s highest court released a ruling that triggered the repeal of Michigan’s laws governing paid sick leave and minimum wage, as well as the restaurant industry’s tip credit, and ushered back two new laws that would increase the minimum wage, expand paid sick leave mandates, and phase out the tip credit.
Repealing the tip credit and implementing a more restrictive paid sick leave mandate will measurably cripple our survival as an industry. Without the tip credit, 1 in 5 full-service restaurants will not survive, and approximately 60,000 jobs (mostly server jobs) will disappear. This would not only be devastating to our industry, it also would hurt our communities, limit options for travelers, and make it impossible to maintain the standards of excellence that we in hospitality strive to uphold.
These changes seem positive at face value; however, those of us who have made hospitality our life’s work know that these changes don’t reflect the real needs of businesses or benefit our workers.
However, the silver lining is that the Michigan Supreme Court has granted the state legislature the ability to amend these laws, and the MRLA is spearheading the effort to protect our businesses from some of the most harmful aspects. We are advocating to save the tip credit, and we will also be advocating for commonsense reforms to the paid sick leave law, which in its current form lacks flexibility and will disproportionately harm small businesses. These changes will save tens of thousands of hospitality jobs and keep our industry alive.
But we can’t do this alone. It’s an all-hands-on-deck moment for our industry, and the MRLA needs the support of its members – both hotels and restaurants. Membership is essential in giving us the influence to protect our businesses and employees, and by joining the MRLA, you directly contribute to the preservation and growth of Michigan hospitality. But there are other, simpler ways to get involved. You can order table tents, created by the MRLA, to display on your front desk, deli counter, or dining room tables and spread the word to the public about the impact of losing the tip credit. As of writing, the MRLA has shipped over 10,000 table tents, and the word is getting out: more and more Michiganders are realizing what would happen to our restaurants and hotels without the tip credit!
Together, I believe we can secure a future in which our hotels remain places of relaxation and comfort, our restaurants can still serve fantastic meals and moments of connection, and our businesses stay competitive, strong, and sustainable.
At your service,
Paul C. Wegert, CHA
Boutique Hotel Professionals
MRLA Chairman
Paul C. Wegert, CHA
Boutique Hotel Professionals
MRLA Chairman
