Bill Text: MI SB1171 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Labor; hours and wages; minimum wage for tipped employees; modify. Amends secs. 3, 4, 4a, 4d, 10 & 15 of 2018 PA 337 (MCL 408.933 et seq.).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-12-19 - Assigned Pa 368'18 [SB1171 Detail]
Download: Michigan-2017-SB1171-Introduced.html
SENATE BILL No. 1171
November 8, 2018, Introduced by Senator HILDENBRAND and referred to the Committee on Government Operations.
A bill to amend 2018 PA 337, entitled
"Improved workforce opportunity wage act,"
by amending sections 2 and 4d (MCL 408.932 and 408.934d).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Commissioner" means the director of the department of
licensing and regulatory affairs.
(b) "Employ" means to engage, suffer, or permit to work.
(c) "Employee" means an individual not less than 16 years of
age employed by an employer on the premises of the employer or at a
fixed site designated by the employer, and includes a minor
employed subject to section 15(1) of the youth employment standards
act, 1978 PA 90, MCL 409.115.
(d) "Employer" means a person, firm, or corporation, including
this state and its political subdivisions, agencies, and
instrumentalities, and a person acting in the interest of the
employer, who employs 2 or more employees at any 1 time within a
calendar year. An employer is subject to this act during the
remainder of that calendar year. Except as specifically provided in
the franchise agreement, as between a franchisee and franchisor,
the franchisee is considered the sole employer of workers for whom
the franchisee provides a benefit plan or pays wages.
(e) "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 his or her employer for purposes
of the federal insurance contributions act, 26 USC 3101 to 3128.
Sec. 4d. (1) The minimum hourly wage rate of an
employee shall
be
as is 38% of the minimum
hourly wage rate established under
subsection
(2) section 4 if all of the following occur:
(a) The employee receives gratuities in the course of his or
her employment.
(b)
The If 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 subsection (2) and
the minimum hourly
wage
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
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.
(d) (e)
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)
For purposes of subsection (1) the minimum hourly wage
rate
of an employee shall be 48% of the minimum hourly wage rate
established
under section 4 effective January 1, 2019; beginning
January
1, 2020, it shall be 60% of the minimum hourly wage rate
established
under section 4; beginning January 1, 2021, it shall be
70%
of the minimum hourly wage rate established under section 4;
beginning
January 1, 2022, it shall be 80% of the minimum hourly
wage
rate established under section 4; beginning January 1, 2023,
it
shall be 90% of the minimum hourly wage rate established under
section
4; and beginning January 1, 2024 and thereafter, it shall
be
100% of the minimum hourly wage rate established under section
4.
(3)
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 will remain property of the employee who
receives
them, except pursuant to a valid and voluntary tip sharing
agreement
outlined in subsection (1)(d) above, regardless of
whether
the employer pays the lower tipped hourly wage described in
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 may not count towards, wages due to the
employee.
(5)
Employers must provide employees and consumers written
notice
of their plan to distribute service charges.
(6)
Employer shall keep records showing compliance with
provisions
of Section 4d for no less than 3 years from the date of
employee’s
last pay period.
