Michigan 2025-2026 Regular Session

Michigan House Bill HB4492

Introduced
5/13/25  

Caption

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

Impact

If enacted, this bill will have a significant impact on labor laws in Michigan, particularly affecting employees who earn tips. The structured wage increases outlined in the bill suggest a gradual approach to aligning the minimum wage for tipped workers with standard wage levels. For instance, starting from February 21, 2025, the bill mandates that minimum wage for such employees shall be set at 38% of the established minimum wage, incrementally increasing to 50% by January 1, 2031. This could enhance income predictability for workers relying on gratuities, as it requires clear documentation and consent from employees regarding wage structures.

Summary

House Bill 4492 aims to amend the Improved Workforce Opportunity Wage Act by introducing specific provisions regarding the minimum hourly wage for employees who receive gratuities. The bill stipulates that employers may establish a reduced minimum wage for these employees, contingent upon certain conditions. Key among these conditions is that the gratuities received must equal or exceed the difference between the minimum wage and the regular wage established under Section 4. This legislative change is intended to clarify the relationship between gratuities and wages for employees working in industries reliant on tips, such as the restaurant and hospitality sectors.

Contention

Notably, the bill raises potential points of contention regarding employer requirements around gratuity distribution. Employers will have the option to require employees receiving gratuities to share them with other staff, which may lead to debates about fairness and employee autonomy. Critics may argue that this could disadvantage individual workers who rely heavily on tips, especially in competitive service environments. Furthermore, the requirement for written employee consent at the time of hire regarding the gratuity sharing policy may spark discussions about worker rights and the extent of employer control over compensation structures.

Companion Bills

No companion bills found.

Previously Filed As

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.).

MI HB5941

Individual income tax: deductions; exclusion of certain gratuities for tipped employees; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

MI SB0992

Labor: benefits; earned sick time act 2018 PA 338; restore 2018 PA 369 amendments. Amends title & secs. 1, 2, 3, 4, 5, 7, 8, 10, 11 & 14 of 2018 PA 338 (MCL 408.961 et seq.) & repeals secs. 6, 9 & 13 of 2018 PA 338 (MCL 408.966 et seq.).

MI HB4395

Labor: hours and wages; employee who files a claim alleging that an employer violated 2018 PA 337; prohibit the commissioner from disclosing the employee's name to the employer under certain circumstances. Amends sec. 9 of 2018 PA 337 (MCL 408.939).

MI HB4405

Labor: fair employment practices; deductions from wages without written consent of employee; revise notice period for certain deductions related to garnishment. Amends sec. 7 of 1978 PA 390 (MCL 408.477).

MI HB4815

Retirement: state employees; employment of retired state employees; allow without forfeiting retirement benefits. Amends sec. 68c of 1943 PA 240 (MCL 38.68c).

MI HB5203

Retirement: county employees; employment of retirant in a county sheriff’s office; allow without forfeiting retirement allowance. Amends sec. 12a of 1851 PA 156 (MCL 46.12a).

MI HB5890

Labor: fair employment practices; severance pay for certain employees who are laid off; require employers to pay for relocations and mass layoffs. Creates new act.

MI HB6057

Labor: benefits; requirement for accrued earned sick time to carry over year to year; modify. Amends secs. 2 & 3 of 2018 PA 338 (MCL 408.962 & 408.963).

MI HB4035

Labor: hours and wages; scheduling standards for certain employers; provide for. Creates new act.

Similar Bills

MI HB4168

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).

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

Payment Of Wages; Payroll Card Account

LA HB472

Provides relative to wages for tipped employees

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.).

IL HB2982

MINIMUM WAGE-GRATUITIES

UT HB0364

Minimum Wage Amendments

CT HB06842

An Act Concerning The Minimum Fair Wage And Persons Employed At Cannabis Establishments.