LANSING, Mich. (AP) — Restaurant and retail associations denounced raising the minimum wage during a Michigan House committee hearing Wednesday, clashing with Democratic lawmakers who back an increase.

The Michigan Restaurant Association, National Federation of Independent Business and other groups said a wage hike would cut into businesses’ profits, which could cause closures and layoffs. Many members said an ongoing ballot drive to up the wage to $10.10 an hour would be especially “devastating” because it eliminates a separate payment scale for tipped workers.