A bill to amend 2014 PA 138, entitled “Workforce opportunity wage act,” by amending sections 4 and 4b (MCL 408.414 and 408.414b); and to repeal acts and parts of acts.
The House proposed fix to the upcoming change in state law ordered by the Supreme Court. This would restore the tipped wage requested by the majority of tipped servers and restaurant owners and modify future increases in the standard minimum wage rising to $15 by January 1, 2029. This is necessary to ward off a MI Supreme Court ruling that struck down the legislative tactic of "adopt and amend" and implemented a proposed ballot initiative that never went before the voters.
Co-sponsored by Reps.
Referred to the Committee on Protecting Michigan Employees and Small Businesses
Reported from the Select Committee on Protecting Michigan Employees and Small Businesses with substitute H-2
Substitute H-2 concurred in by voice vote
1. Amend page 3, following line 14, by inserting:
“Sec. 4d. (1) Before September 1, 2014, the minimum hourly wage rate is $2.65 per hour and, beginning
September 1, 2014, Subject to subsection (2), the minimum hourly wage rate is 38% 48% of the minimum
hourly wage rate established in section 4 if all of the following occur:
(a) The employee receives gratuities in the course of his or her the employee’s employment.
(b) If the gratuities described in subdivision (a) plus the minimum hourly wage rate under this subsection do not equal or exceed the minimum hourly wage otherwise established under section 4, the employer pays any shortfall to the employee.
(c) The gratuities are proven gratuities as indicated by the employee’s declaration for purposes of the federal insurance contributions act, 26 USC 3101 to 3128.
(d) The employee was informed by the employer of the provisions of this section.
(2) Beginning February 21, 2026, the minimum hourly wage rate for an employee described in subsection (1) is as follows:
(a) 60% of the minimum hourly wage rate established under section 4.
(b) Beginning February 21, 2027, 70% of the minimum hourly wage rate established under section 4.
(c) Beginning February 21, 2028, 80% of the minimum hourly wage rate established under section 4.
(d) Beginning February 21, 2029, 90% of the minimum hourly wage rate established under section 4.
(e) Beginning February 21, 2030, the minimum hourly wage rate established under section 4.
(3) (2) As used in this section, “gratuities” means tips or voluntary monetary contributions received by an employee from a guest, patron, or customer for services rendered to that guest, patron, or customer and that the employee reports to the employer for purposes of the federal insurance contributions act, 26 USC 3101 to 3128.”.
The amendment failed by voice vote
1. Amend page 1, line 8, by striking out the balance of the subsection and inserting:
“(a) Beginning February 21, 2025, $12.48.
(b) Beginning February 21, 2026, $13.29.
(c) Beginning February 21, 2027, $14.16.
(d) Beginning February 21, 2028, $14.97.”.
2. Amend page 2, line 5, after the second “January” by striking out “2030” and inserting “2029”.
The amendment failed by voice vote
1. Amend page 3, following line 14, by inserting:
“Sec. 4d. (1) Before September 1, 2014, the minimum hourly wage rate is $2.65 per hour and, beginning
September 1, 2014, Subject to subsection (2), the minimum hourly wage rate is 38% of the minimum
hourly wage rate established in section 4 if all of the following occur:
(a) The employee receives gratuities in the course of his or her the employee’s employment.
(b) If the gratuities described in subdivision (a) plus the minimum hourly wage rate under this subsection do not equal or exceed the minimum hourly wage otherwise established under section 4, the employer pays any shortfall to the employee.
(c) The gratuities are proven gratuities as indicated by the employee’s declaration for purposes of the federal insurance contributions act, 26 USC 3101 to 3128.
(d) The employee was informed by the employer of the provisions of this section.
(2) Beginning January 1, 2026, the minimum hourly wage rate for an employee described in subsection (1) is as follows:
(a) 40% of the minimum hourly wage rate established under section 4.
(b) Beginning January 1, 2027, 42% of the minimum hourly wage rate established under section 4.
(c) Beginning January 1, 2028, 44% of the minimum hourly wage rate established under section 4.
(d) Beginning January 1, 2029, 46% of the minimum hourly wage rate established under section 4.
(e) Beginning January 1, 2030, 49% of the minimum hourly wage rate established under section 4.
(f) Beginning January 1, 2031, 51% of the minimum hourly wage rate established under section 4.
(g) Beginning January 1, 2032, 53% of the minimum hourly wage rate established under section 4.
(h) Beginning January 1, 2033, 55% of the minimum hourly wage rate established under section 4.
(i) Beginning January 1, 2034, 57% of the minimum hourly wage rate established under section 4.
(j) Beginning January 1, 2035, 60% of the minimum hourly wage rate established under section 4.
(k) Beginning January 1, 2036, the minimum hourly wage rate established under section 4.
(3) (2) As used in this section, “gratuities” means tips or voluntary monetary contributions received by an employee from a guest, patron, or customer for services rendered to that guest, patron, or customer and that the employee reports to the employer for purposes of the federal insurance contributions act, 26 USC 3101 to 3128.”.
The amendment failed by voice vote
1. Amend page 3, following line 14, by inserting:
“Sec. 4d. (1) Before September 1, 2014, the minimum hourly wage rate is $2.65 per hour and, beginning
September 1, 2014, the The minimum hourly wage rate is 38% of the minimum hourly wage rate established
in section 4 if all of the following occur:
(a) The employee receives gratuities in the course of his or her the employee’s employment.
(b) Every day the employee works, the employer calculates the employee’s gratuities described in subdivision (a) plus the minimum hourly wage rate described in this subsection. If the gratuities described in subdivision (a) plus the minimum hourly wage rate under described in this subsection do not equal or exceed the minimum hourly wage otherwise established under section 4, the employer pays any shortfall to the employee.
(c) The gratuities are proven gratuities as indicated by the employee’s declaration for purposes of the federal insurance contributions act, 26 USC 3101 to 3128.
(d) The employee was informed by the employer of the provisions of this section.
(2) As used in this section, “gratuities” means tips or voluntary monetary contributions received by an employee from a guest, patron, or customer for services rendered to that guest, patron, or customer and that the employee reports to the employer for purposes of the federal insurance contributions act, 26 USC 3101 to 3128.”.
The amendment failed by voice vote
1. Amend page 3, following line 14, by inserting:
“Sec. 4d. (1) Before September 1, 2014, the minimum hourly wage rate is $2.65 per hour and, beginning
September 1, 2014, Subject to subsections (2) and (3), the minimum hourly wage rate is 38% of the
minimum hourly wage rate established in section 4 if all of the following occur:
(a) The employee receives gratuities in the course of his or her the employee’s employment.
(b) If the gratuities described in subdivision (a) plus the minimum hourly wage rate under this subsection do not equal or exceed the minimum hourly wage otherwise established under section 4, the employer pays any shortfall to the employee.
(c) The gratuities are proven gratuities as indicated by the employee’s declaration for purposes of the federal insurance contributions act, 26 USC 3101 to 3128.
(d) The employee was informed by the employer of the provisions of this section.
(2) For an employee described in subsection (1) who works for an employer that employs fewer than 25 employees, the minimum hourly wage rate is as follows:
(a) Beginning February 21, 2026, 40% of the minimum hourly wage rate established under section 4.
(b) Beginning February 21, 2027, 42% of the minimum hourly wage rate established under section 4.
(c) Beginning February 21, 2028, 44% of the minimum hourly wage rate established under section 4.
(d) Beginning February 21, 2029, 46% of the minimum hourly wage rate established under section 4.
(e) Beginning February 21, 2030, 49% of the minimum hourly wage rate established under section 4.
(f) Beginning February 21, 2031, 51% of the minimum hourly wage rate established under section 4.
(g) Beginning February 21, 2032, 53% of the minimum hourly wage rate established under section 4.
(h) Beginning February 21, 2033, 55% of the minimum hourly wage rate established under section 4.
(i) Beginning February 21, 2034, 57% of the minimum hourly wage rate established under section 4.
(j) Beginning February 21, 2035, 60% of the minimum hourly wage rate established under section 4.
(k) Beginning February 21, 2036, the minimum hourly wage rate established under section 4.
(3) For an employee described in subsection (1) who works for an employer that employs 25 or more employees, the minimum hourly wage rate is as follows:
(a) Beginning February 21, 2025, 48% of the minimum hourly wage rate established under section 4.
(b) Beginning February 21, 2026, 60% of the minimum hourly wage rate established under section 4.
(c) Beginning February 21, 2027, 70% of the minimum hourly wage rate established under section 4.
(d) Beginning February 21, 2028, 80% of the minimum hourly wage rate established under section 4.
(e) Beginning February 21, 2029, 90% of the minimum hourly wage rate established under section 4.
(f) Beginning February 21, 2030, the minimum hourly wage rate established under section 4.
(4) (2) As used in this section, “gratuities” means tips or voluntary monetary contributions received by an employee from a guest, patron, or customer for services rendered to that guest, patron, or customer and that the employee reports to the employer for purposes of the federal insurance contributions act, 26 USC 3101 to 3128.”.
The amendment failed by voice vote
Passed in the House 63 to 41 (details)
Motion to give immediate effect
by
The motion prevailed by voice vote
