Michigan 2025-2026 Regular Session

Michigan House Bill HB4168

Introduced
3/5/25  

Caption

Labor: hours and wages; employer offset of wages due an employee in a pay period based on the amount of gratuities the employee receives; prohibit. Amends sec. 4d of 2018 PA 337 (MCL 408.934d).

Impact

The bill significantly impacts labor laws relating to minimum wage by providing a distinct framework for employees who earn gratuities in their jobs. This is designed to address the unique financial dynamics of tipped employees, ensuring that they receive a fair wage that reflects their earnings in gratuities. The incremental rise in the percentage of the minimum wage that employees will receive serves to gradually adapt to the anticipated economic conditions and associated costs of living over the years.

Summary

House Bill 4168 amends the Improved Workforce Opportunity Wage Act of 2018 to establish minimum hourly wage rates for employees who receive gratuities. The bill outlines specific conditions under which the minimum wage for these employees is calculated, beginning at 38% of the established minimum wage, with incremental increases each year, ultimately reaching 50% by 2031. This structured approach aims to provide clarity and consistency for both employers and employees regarding wage expectations and adaptations based on gratuities received.

Contention

One notable point of contention that may arise from HB 4168 centers around the conditions for distributing gratuities. While the bill stipulates that employees must retain all gratuities received, some may argue about the fairness of the minimum wage offset by gratuities. Employers might face challenges in compliance with the stipulations, including keeping records for at least three years and ensuring employees are made aware of their rights regarding gratuities from the onset of employment. There may also be concerns about potential loopholes in these provisions that could affect the protection intended for tipped employees.

Companion Bills

No companion bills found.

Similar Bills

MI HB4492

Labor: hours and wages; sharing gratuities with other employees; allow an employer to require. Amends sec. 4d of 2018 PA 337 (MCL 408.934d).

MI SB0008

Labor: hours and wages; minimum hourly wage rate; modify Amends secs. 2, 4, 4d, 9 & 10 of 2018 PA 337 (MCL 408.932 et seq.).

AK SB79

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LA HB472

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MI SB0991

Labor: hours and wages; improved workforce opportunity wage act 2018 PA 337; restore 2018 PA 368 amendments. Amends secs. 4, 4a, 4d, 10 & 15 of 2018 PA 337 (MCL 408.934 et seq.).

UT HB0364

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IL HB2982

MINIMUM WAGE-GRATUITIES

UT SB0073

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