State Rep. Dave Prestin | Michigan House Republicans
State Rep. Dave Prestin | Michigan House Republicans
State Representative Dave Prestin voted in favor of House Bills 4001 and 4002 on Thursday. These bills aim to restore the tip credit and protect small businesses from strict paid sick time mandates. The legislation was introduced following a Michigan Supreme Court decision last summer that imposed challenging rules and costs on small businesses and restaurants. The bills received strong bipartisan support in the House.
Prestin has a long history in the service industry, having worked as a server and bartender in his youth before owning several independent restaurants nationwide. He most recently owned a truck stop with a full-service restaurant in Cedar River.
Reflecting on the potential impact of these legislative changes, Prestin said, “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.” He emphasized that increased expenses could lead to layoffs, reduced product quality, or higher consumer costs. "Without legislative action," he continued, "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."
Prestin highlighted that independent restaurants are particularly vulnerable to these changes as they lack support from larger chains. These establishments constitute most of the food service industry in Michigan's Upper Peninsula.
House Bill 4001 ensures that the tip credit remains at 38%, safeguarding the income of servers, bartenders, and other tipped workers who currently earn $30 to $40 per hour. It also shields small businesses from new financial burdens anticipated if the credit were eliminated.
House Bill 4002 allows workers and small businesses to keep their existing paid leave arrangements while clarifying complex rules seen as unrealistic by many.
The bills will now proceed to the Senate for further deliberation.
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