Bill Text: MI SB0168 | 2019-2020 | 100th Legislature | Introduced


Bill Title: Labor; hours and wages; minimum wage; increase and modify for tipped employees. Amends secs. 4 & 4d of 2018 PA 337 (MCL 408.934 & 408.934d).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-07 - Referred To Committee On Government Operations [SB0168 Detail]

Download: Michigan-2019-SB0168-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 168

 

 

March 7, 2019, Introduced by Senators ALEXANDER, WOJNO, BAYER, MCMORROW, CHANG, GEISS, ANANICH, HERTEL, POLEHANKI, HOLLIER, IRWIN, MCCANN, BRINKS, MOSS    and BULLOCK and referred to the Committee on Government Operations.

 

 

 

     A bill to amend 2018 PA 337, entitled

 

"Improved workforce opportunity wage act,"

 

by amending sections 4 and 4d (MCL 408.934 and 408.934d), as

 

amended by 2018 PA 368.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4. (1) Subject to the exceptions specified in this act,

 

the minimum hourly wage rate is:

 

     (a) Before September 1, 2014, $7.40.

 

     (b) Beginning September 1, 2014, $8.15.

 

     (c) Beginning January 1, 2016, $8.50.

 

     (d) Beginning January 1, 2017, $8.90.

 

     (e) Beginning January 1, 2018, $9.25.

 

     (f) In calendar year 2019, or a subsequent calendar year as

 


described in subsection (2), $9.45.

 

     (g) In calendar year 2020, or a subsequent calendar year as

 

described in subsection (2), $9.65.

 

     (h) In calendar year 2021, or a subsequent calendar year as

 

described in subsection (2), $9.87.

 

     (i) In calendar year 2022, or a subsequent calendar year as

 

described in subsection (2), $10.10.

 

     (j) In calendar year 2023, or a subsequent calendar year as

 

described in subsection (2), $10.33.

 

     (k) In calendar year 2024, or a subsequent calendar year as

 

described in subsection (2), $10.56.

 

     (l) In calendar year 2025, or a subsequent calendar year as

 

described in subsection (2), $10.80.

 

     (m) In calendar year 2026, or a subsequent calendar year as

 

described in subsection (2), $11.04.

 

     (n) In calendar year 2027, or a subsequent calendar year as

 

described in subsection (2), $11.29.

 

     (o) In calendar year 2028, or a subsequent calendar year as

 

described in subsection (2), $11.54.

 

     (p) In calendar year 2029, or a subsequent calendar year as

 

described in subsection (2), $11.79.

 

     (q) In calendar year 2030, or a subsequent calendar year as

 

described in subsection (2), $12.05.

 

     (1) Subject to the exceptions specified in this act, the

 

minimum hourly wage rate is:

 

     (a) Beginning January 1, 2019, $10.00.

 

     (b) Beginning January 1, 2020, $10.65.


     (c) Beginning January 1, 2021, $11.35.

 

     (d) Beginning January 1, 2022, $12.00.

 

     (2) Every October beginning in 2022, the state treasurer shall

 

calculate an adjusted minimum hourly wage rate. The state treasurer

 

shall calculate the adjusted minimum hourly wage rate by

 

multiplying the otherwise applicable minimum hourly wage rate by

 

the 12-month percentage increase, if any, in the Consumer Price

 

Index for Urban Wage Earners and Clerical Workers, CPI-W, or a

 

successor index, as published by the Bureau of Labor Statistics of

 

the United States Department of Labor, based on the most recent 12-

 

month period for which data are available. The state treasurer

 

shall publish the adjusted minimum hourly wage rate by November 1

 

of the year it is calculated. The adjusted minimum hourly wage rate

 

is effective beginning January 1 of the succeeding year.

 

     (3) (2) An increase in the minimum hourly wage rate as

 

prescribed in subsection (1) (2) does not take effect if the

 

unemployment rate for this state, as determined by the Bureau of

 

Labor Statistics, United States Department of Labor, is 8.5% or

 

greater for the calendar year preceding the calendar year of the

 

prescribed increase. An increase in the minimum hourly wage rate as

 

prescribed in subsection (1) that does not take effect pursuant to

 

this subsection takes effect in the first calendar year following a

 

calendar year for which the unemployment rate for this state, as

 

determined by the Bureau of Labor Statistics, United States

 

Department of Labor, is less than 8.5%.

 

     Sec. 4d. (1) The minimum hourly wage rate of an employee is

 

38% of the minimum hourly wage rate as established in section 4


under subsection (2) if all of the following occur:

 

     (a) The employee receives gratuities in the course of his or

 

her employment.

 

     (b) If the The gratuities described in subdivision (a) plus

 

the minimum hourly wage rate under this subsection do not equal or

 

exceed the difference between the minimum hourly wage rate

 

otherwise established under section 4, the employer pays any

 

shortfall to the employee.subsection (2) and the minimum hourly

 

wage rate established under section 4.

 

     (c) The gratuities are proven gratuities as indicated by the

 

employee's declaration for purposes of the federal insurance

 

contribution act, 26 USC 3101 to 3128.

 

     (d) The entirety of the gratuities are retained by the

 

employee who receives them, except as voluntarily shared with other

 

employees who are directly or indirectly part of the chain of

 

service and whose duties are not primarily managerial or

 

supervisory.

 

     (e) (d) The employee was informed by the employer of the

 

provisions of this section, in writing, at or before the time of

 

hire, and gave written consent.

 

     (2) The minimum hourly wage rate of an employee that meets the

 

requirements of subsection (1) is:

 

     (a) Beginning January 1, 2019, 48% of the minimum hourly wage

 

rate established under section 4.

 

     (b) Beginning January 1, 2020, 60% of the minimum hourly wage

 

rate established under section 4.

 

     (c) Beginning January 1, 2021, 70% of the minimum hourly wage


rate established under section 4.

 

     (d) Beginning January 1, 2022, 80% of the minimum hourly wage

 

rate established under section 4.

 

     (e) Beginning January 1, 2023, 90% of the minimum hourly wage

 

rate established under section 4.

 

     (f) Beginning January 1, 2024, 100% of 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.

 

     (4) Gratuities remain property of the employee who receives

 

them, except pursuant to a valid and voluntary tip sharing

 

agreement described in subsection (1)(d), regardless of whether the

 

employer pays the lower tipped hourly wage established under

 

subsection (2) or the full minimum hourly rate established under

 

section 4. Gratuities and service charges paid to an employee are

 

in addition to, and do not count toward, wages due the employee.

 

     (5) An employer shall provide employees and consumers written

 

notice of its intent to distribute service charges.

 

     (6) An employer shall keep records showing compliance with

 

this section for at least 3 years after the date of an employee's

 

last pay period.

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