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A statewide effort is underway to pause Michigan’s new minimum wage law and put the issue directly to voters in the November 2026 election. This could have major implications for local employers, especially those in hospitality and tourism, key industries here in Manistee.
WHAT'S GOING ON?
A group called Voters to Stop Pay Cuts is trying to change Michigan’s minimum wage law.
They’ve been given the green light to collect signatures for a 2026 ballot proposal.
If they get over 223,000 valid signatures, Michigan’s current law, Public Act 1 of 2025, would be paused and possibly replaced with an older plan from 2018.
In 2018, there was a plan to:
- Raise the minimum wage
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Get rid of the lower “tipped wage” (so servers and bartenders would earn full minimum wage plus tips)
That plan didn’t move forward at the time. But in 2024, the Michigan Supreme Court said the state has to put that plan in place. To make things easier for businesses, the state passed a new law in 2025 (Public Act 1) that:
- Keeps the lower tipped wage
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Raises it slowly over time instead of all at once
Now, the new group, Voters to Stop Pay Cut, wants to cancel the 2025 law and let voters decide whether to go back to the 2018 plan instead.
WHAT COULD THIS MEAN FOR MANISTEE?
If the ballot initiative succeeds, the 2025 law (Public Act 1) would be paused immediately, and the 2018 plan would resume effect. That means:
- All workers, including tipped employees, would need to be paid full minimum wage, plus tips.
- Restaurants, bars, and other service-based businesses would see a significant jump in payroll costs.
- Employers may have to raise prices, reduce hours, cut staff, or automate jobs to make ends meet, especially challenging for seasonal and small businesses.
WHAT'S NEXT?
Signature collection is underway. If the group reaches the required number, the proposal will appear on the November 2026 ballot, and the new wage rules will be frozen until then.
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