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2014 Senate Bill 934: Preempt $10.10 minimum wage initiative; hike mandated minimum

Public Act 138 of 2014

  1. Introduced by Sen. Randy Richardville (R) on May 8, 2014, to repeal the current state minimum wage law that makes it unlawful to employ a worker for less than $7.40 an hour, and replace it with a new law increasing the mandated minimum to $8.15 an hour, and increasing the minimum amount the employer of a worker who receives tips must pay from $2.65 to $2.93 an hour. (A tipped-worker’s employer must pay the difference between this amount and the regular mandated minimum if tips come up short).
    The bill is widely regarded as a gambit to stop an “initiated law” from being placed on the November 2014 ballot, which would increase the mandated minimums to $10.10 for both tipped and non-tipped employees, and index this to inflation. If the bill repeals the statute the initiative would amend, the initiative would become moot. The bill was introduced a few weeks before petitions being circulated by a group funded by unions and other labor interests must be submitted for their initiative to be on the 2014 general election ballot.
    • Referred to the Senate on May 8, 2014.
    • Substitute offered in the Senate on May 15, 2014. The substitute passed by voice vote in the Senate on May 15, 2014.
    • Amendment offered by Sen. Arlan Meekhof (R) on May 15, 2014, to revise details of the inflation indexing formula. The amendment passed by voice vote in the Senate on May 15, 2014.
    • Amendment offered by Sen. Arlan Meekhof (R) on May 15, 2014, to cap the amount the mandated minimum wage could go up in one year due to inflation at 4 percent. The amendment passed by voice vote in the Senate on May 15, 2014.
    • Amendment offered by Sen. Gretchen Whitmer (D) on May 15, 2014, to replace a provision exempting employers of individuals under age 18 from the mandated minimum with a provision mandating a minimum wage for young people that is 85 percent of the amount for adults. The amendment passed by voice vote in the Senate on May 15, 2014.
  2. Passed 24 to 14 in the Senate on May 15, 2014, to repeal the current state minimum wage law that makes it unlawful to employ a worker for less than $7.40 an hour, and replace it with a new law gradually increasing the mandated minimum to $9.20 an hour, and increasing the minimum amount the employer of a worker who receives tips must pay from $2.65 to $2.93 an hour. (A tipped-worker’s employer must pay the difference between this amount and the regular mandated minimum if tips come up short). These amounts would increase with inflation (with a 4 percent annual cap), and the state would be required to reimburse local governments for any cost increases caused by the mandated wage hikes.
    As introduced the bill was seen as a Republican gambit to keep an “initiated law” off the November ballot, to hike the mandated minimums to $10.10 for both tipped and non-tipped employees. It became a bipartisan gambit after negotiations for the higher rate and inflation indexing brought most Democrats on board.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the House on May 20, 2014.
    • Referred to the House Government Operations Committee on May 20, 2014.
      • Reported in the House on May 27, 2014, with the recommendation that the substitute (H-2) be adopted and that the bill then pass.
    • Amendment offered in the House on May 27, 2014, to adopt a version of the bill that would gradually raise the mandated minimum wage to $8.50 per hour, with no automatic inflation indexing. The amendment failed by voice vote in the House on May 27, 2014.
    • Substitute offered by Rep. Jeff Farrington (R) on May 27, 2014, to adopt a version of the bill with higher mandated minimums and inflation indexing. The substitute passed by voice vote in the House on May 27, 2014.
    • Amendment offered by Rep. Ellen Lipton (D) on May 27, 2014, to increase the "tipped" worker minimum wage to 50 percent of the regular minimum wage. The amendment failed by voice vote in the House on May 27, 2014.
    • Amendment offered by Rep. Jeff Farrington (R) on May 27, 2014, to revise a detail of the forumula used to reimburse local governments for cost increases generated by the bill. The amendment passed by voice vote in the House on May 27, 2014.
  4. Passed 76 to 34 in the House on May 27, 2014, To repeal the current state minimum wage law that makes it unlawful to employ a worker for less than $7.40 an hour, and replace it with a new law gradually increasing the mandated minimum to $9.25 an hour in 2018. The minimum amount the employer of a worker who receives tips must pay would rise from $2.65 to an amount that is 38 percent of the non-tipped minimum, or $3.52. (A tipped-worker’s employer must pay the difference between this amount and the regular minimum if tips come up short).
    These figures would increase with inflation (with a 3.5 percent annual cap), and the state would be required to reimburse local governments for any cost increases caused by the mandated wage hikes. The wage mandates would be suspended if the state unemployment rate rises above 8.5 percent.
    As introduced the bill was seen as a Republican gambit to keep an “initiated law” off the November ballot, to hike the mandated minimums to $10.10 for both tipped and non-tipped employees. It became a bipartisan gambit after negotiations for the higher rate and inflation indexing brought most Democrats on board..
    Who Voted "Yes" and Who Voted "No"

  5. Received in the Senate on May 27, 2014.
  6. Passed 24 to 12 in the Senate on May 27, 2014, to concur with the House-passed version of the bill, which mandates a higher mandated minimum wage and revises details of the inflation indexing.
    Who Voted "Yes" and Who Voted "No"

  7. Signed by Gov. Rick Snyder on May 27, 2014.

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