Opinion | Why restaurant owner supports scheduled wage increases, paid sick time

This restaurant owner supports Michigan’s scheduled increases in minimum wage, tipped wage, and paid time off for her employees. As I watch the debate over legislation intended to weaken the planned worker gains, I am surprised and disappointed by the restaurant industry’s position. Suppressing worker wages strikes me as shortsighted. I know firsthand the benefits of fairly compensating my staff.

Let me start by stating I’ve been invested in this process since it began. In 2018, the One Fair Wage campaign garnered enough signatures to place a proposal on the state ballot. If passed, the initiative would have, over the course of a few years, raised the minimum wage, eliminated the tipped wage, and provided paid sick time to restaurant workers. Rather than allowing the initiative to be voted on, state legislators effectively killed it. They voted these changes into law, only to turn around and undo it. In October 2018, after the Legislature had neutralized the intention of the bill, my restaurant hosted an event with Jane Fonda and state and local elected officials and activists at our restaurant to draw attention to this travesty. 

After a lengthy court battle, the Michigan Supreme Court ruled that the state Legislature’s move was illegal and required it to adopt the rules as originally stated. As the deadline nears for implementation, and as workers get closer to receiving the compensation they deserve, industry groups have lined up to oppose it.

As a restaurant owner, I believe that suppressing worker wages is bad for business. I base my opinions on years of experience. Having been in the industry since 2011, I have found that it is best practice to pay people a living wage and to give them paid sick time — as well as other benefits.

At my three Ann Arbor establishments, with a combined 44 staff members, tipped employees receive an average wage of $12.40 per hour. The tips pool yields each staffer an additional $8.50 to $11/hour. A decade ago, we began offering paid time off at the rate of one hour for every 30 hours worked. Additionally, my business offers health and dental insurance for full-time employees, a $54 per month fitness allowance, and a 3% matched retirement savings plan. Staff can count on regular raises of 50 cents every six months (full-time equivalent). Since they receive and bank paid sick time, they are able to stay home when they are sick — and not come to work and chance infecting others.

My employees have been with me for an average of 3.3 years. Seven of them have tenures longer than five years apiece. That longevity counts. I save on the time and cost of interviewing, hiring and training. My business functions well. Staff members know and excel at their jobs. There is an atmosphere of trust; I don’t worry about theft or other types of malfeasance. Our crew enjoys being here. We typically ace our health inspections and we have excellent customer reviews.

Furthermore, I have never experienced a worker shortage — something that seems endemic in the restaurant industry. In fact, the opposite is true. The word about my business’ fair compensation practices is out. Every day I receive one or more resumes from qualified candidates. Generally I have to respond that we are fully staffed and not hiring. Sometimes I’m asked by other restaurateurs to send applicants their way.

To my colleagues in the industry, I have this message: Let the planned wage increases and paid sick time take place. Operate from a position of generosity and humanity. Watch how it benefits your business.