substitute for Senate BILL NO. 8 A bill to amend 2018 PA 337, entitled "Improved workforce opportunity wage act," by amending sections 2, 4, 4d, 9, and 10 (MCL 408.932, 408.934, 408.934d, 408.939, and 408.940). the peoplE of the state of michigan enact: Sec. 2. As used in this act: (a) "Commissioner" or "director" means the director of the department of licensing labor and regulatory affairs.economic opportunity. (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 of this state, and a person acting in the interest of the employer, who that 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. Sec. 4. (1) . Subject to the exceptions specified in this act, the minimum hourly wage rate is: (a) a. Beginning January 1, 2019, $10.00.February 21, 2025, $12.48. (b) b. Beginning January 1, 2020, $10.65.2026, $13.73. (c) c. Beginning January 1, 2021, $11.35.2027, $15.00. d. Beginning January 1, 2022, $12.00. (2) Every October beginning in October, 2022, 2027, the state treasurer shall calculate an adjusted minimum wage rate. The adjustment shall must increase the minimum wage by the rate of inflation. The increase state treasurer shall be calculated calculate the increase by multiplying the otherwise applicable minimum wage by the 12-month percentage increase, if any, in the consumer price index Consumer Price Index for urban wage earners and clerical workers, CPI-W, the midwest region, CPI-U, or a successor index, as published by the bureau of labor statistics Bureau of Labor Statistics of the United States department of labor, Department of Labor, based upon on the most recent 12-month period for which data are available. The state treasurer shall publish the adjusted minimum wage rate shall be published by November 1 of the year in which it is calculated. and shall be The adjusted minimum wage rate is effective beginning January 1 of the immediately succeeding year. (3) An increase in the minimum hourly wage rate as prescribed in subsection (2) does not take effect if the unemployment rate, as determined by the bureau of labor statistics, Bureau of Labor Statistics of the United States department of labor, Department of Labor, for this state is 8.5% or greater for the year immediately preceding the year of the prescribed increase. Sec. 4d. (1) The minimum hourly wage rate of an employee shall must be as established as provided for under subsection (2) if all of the following occur:conditions are met: (a) The employee receives gratuities in the course of his or her the employee's employment. (b) The gratuities described in subdivision (a) equal or exceed the difference between the minimum hourly wage rate established under subsection (2) and the minimum hourly wage 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 Except as otherwise provided in this subdivision, the entirety of the gratuities are retained by the employee who receives them. , except as This subdivision does not prohibit an employee from voluntarily shared sharing the employee's gratuities with other employees who are another employee if the other employee is directly or indirectly part of the chain of service and whose the other employee's duties are not primarily managerial or supervisory. (e) The employee was employee's employer informed by the employer the employee of the provisions of this section, in writing, at or before the time of hire, and the employee gave written consent. (2) For purposes of subsection (1) the The minimum hourly wage rate of an employee shall be 48% described in subsection (1) is as follows: (a) Beginning February 21, 2025, 38% of the minimum hourly wage rate established under section 4. (b) Beginning January 1, 2026, 40% of the minimum hourly wage rate established under section 4. effective January 1, 2019; beginning (c) Beginning January 1, 2027, 42% of the minimum hourly wage rate established under section 4. (d) Beginning January 1, 2028, 44% of the minimum hourly wage rate established under section 4. (e) Beginning January 1, 2029, 46% of the minimum hourly wage rate established under section 4. (f) Beginning January 1, 2020, it shall be 60% 2030, 48% of the minimum hourly wage rate established under section 4. ; beginning (g) Beginning January 1, 2021, it shall be 70% 2031, 50% 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 Except as otherwise provided under subsection (1)(d), gratuities remain the 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 employee's employer pays the employee lower tipped the minimum hourly wage described in rate established under subsection (2) or the full minimum hourly wage rate established under section 4. Gratuities and service charges paid to an employee are in addition to, and may do not count towards, toward, wages due to the employee. (5) Employers must shall provide employees and consumers written notice of their the employer's plan to distribute service charges. (6) Employer An employer shall keep records showing that show compliance with provisions of Section 4d this section for no not less than 3 years from after the date of an employee's last pay period. Sec. 9. (1) If an employer violates this act, the employee affected by the violation, at any time within 3 years, may do any of the following: (a) Bring a civil action for the recovery of the difference between the amount paid and the amount that, but for the violation, would have been paid the employee under this act and an equal additional amount as liquidated damages together with costs and reasonable attorney fees as are allowed by the court. (b) File a claim with the commissioner director who shall investigate the claim. (2) If the commissioner director determines there is reasonable cause to believe that the employer has violated this act and the commissioner director is subsequently unable to obtain voluntary compliance by the employer within a reasonable period of time, the commissioner director shall bring a civil action under subsection (1)(a). The commissioner director may investigate and file a civil action under subsection (1)(a) on behalf of all employees of that employer who are similarly situated at the same work site and who have not brought a civil action under subsection (1)(a). A contract or agreement between the employer and the employee or any acceptance of a lesser wage by the employee is not a bar to the action. (3) In Except as otherwise provided in subsection (4), in addition to bearing liability for civil remedies described in this section, an employer who fails to pay the minimum hourly wage in violation of this act, or who that violates a provision of section 4a governing an employee's compensatory time, is subject to a civil fine of not more than $1,000.00. (4) An employer that fails to pay the minimum hourly wage to an employee as described in section 4d(1) is subject to a civil fine of not more than $2,500.00. Sec. 10. (1) This act does not apply to an employer that is subject to the minimum wage provisions of the fair labor standards act of 1938, 29 USC 201 to 219, unless the application of those federal minimum wage provisions to the employer would result in a lower minimum hourly wage than provided in under this act. Each of the following exceptions applies to If an employer who is subject to this act only by application of this subsection, : (a) Section 4a does not apply. (b) This this act does not apply to an the employer's employee who is exempt from the minimum wage requirements of the fair labor standards act of 1938, 29 USC 201 to 219. (2) Notwithstanding subsection (1), an employee shall must be paid in accordance with the minimum wage and overtime compensation requirements of sections 4 and 4a if the employee meets either of the following conditions: (a) He or she The employee is employed in domestic service employment to provide companionship services as that term is defined in 29 CFR 552.6 for individuals who, because of age or infirmity, are unable to care for themselves and is not a live-in domestic service employee as described in 29 CFR 552.102. (b) He or she The employee is employed to provide child care, childcare, but is not a live-in domestic service employee as described in 29 CFR 552.102. However, the requirements of sections 4 and 4a do not apply if the employee meets all the following conditions: (i) (i) He or she is under Is younger than the age of 18. (ii) (ii) He or she provides Provides services on a casual basis as that term is defined in 29 CFR 552.5. (iii) (iii) He or she provides Provides services that do not regularly exceed 20 hours per week, in the aggregate. (3) This act does not apply to persons individuals employed in summer camps for not more than 4 months or to employees who are covered under section 14 of the fair labor standards act of 1938, 29 USC 214. (4) This act does not apply to agricultural fruit growers, pickle growers and tomato growers, or other agricultural employers who traditionally contract for harvesting on a piecework basis, as to those employees used for harvesting, until the board has acquired sufficient data to determine an adequate basis to establish a scale of piecework and determines a scale equivalent to the prevailing minimum wage for that employment. The piece rate scale shall must be equivalent to the minimum hourly wage in that, if the payment by unit of production is applied to a worker of average ability and diligence in harvesting a particular commodity, he or she the worker receives an amount not less than the hourly minimum wage. (5) Notwithstanding any other provision of this act, subsection (1)(a) and (b) and subsection (2) do not deprive an employee or any class of employees of any right that existed on September 30, 2006 to receive overtime compensation or to be paid the minimum wage. Enacting section 1. This amendatory act does not take effect unless House Bill No. 4002 of the 103rd Legislature is enacted into law.
substitute for
Senate BILL NO. 8
A bill to amend 2018 PA 337, entitled
"Improved workforce opportunity wage act,"
by amending sections 2, 4, 4d, 9, and 10 (MCL 408.932, 408.934, 408.934d, 408.939, and 408.940).
the peoplE of the state of michigan enact:
Sec. 2. As used in this act:
(a) "Commissioner" or "director" means the director of the department of licensing labor and regulatory affairs.economic opportunity.
(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 of this state, and a person acting in the interest of the employer, who that 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.
Sec. 4. (1) . Subject to the exceptions specified in this act, the minimum hourly wage rate is:
(a) a. Beginning January 1, 2019, $10.00.February 21, 2025, $12.48.
(b) b. Beginning January 1, 2020, $10.65.2026, $13.73.
(c) c. Beginning January 1, 2021, $11.35.2027, $15.00.
d. Beginning January 1, 2022, $12.00.
(2) Every October beginning in October, 2022, 2027, the state treasurer shall calculate an adjusted minimum wage rate. The adjustment shall must increase the minimum wage by the rate of inflation. The increase state treasurer shall be calculated calculate the increase by multiplying the otherwise applicable minimum wage by the 12-month percentage increase, if any, in the consumer price index Consumer Price Index for urban wage earners and clerical workers, CPI-W, the midwest region, CPI-U, or a successor index, as published by the bureau of labor statistics Bureau of Labor Statistics of the United States department of labor, Department of Labor, based upon on the most recent 12-month period for which data are available. The state treasurer shall publish the adjusted minimum wage rate shall be published by November 1 of the year in which it is calculated. and shall be The adjusted minimum wage rate is effective beginning January 1 of the immediately succeeding year.
(3) An increase in the minimum hourly wage rate as prescribed in subsection (2) does not take effect if the unemployment rate, as determined by the bureau of labor statistics, Bureau of Labor Statistics of the United States department of labor, Department of Labor, for this state is 8.5% or greater for the year immediately preceding the year of the prescribed increase.
Sec. 4d. (1) The minimum hourly wage rate of an employee shall must be as established as provided for under subsection (2) if all of the following occur:conditions are met:
(a) The employee receives gratuities in the course of his or her the employee's employment.
(b) The gratuities described in subdivision (a) equal or exceed the difference between the minimum hourly wage rate established under subsection (2) and the minimum hourly wage 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 Except as otherwise provided in this subdivision, the entirety of the gratuities are retained by the employee who receives them. , except as This subdivision does not prohibit an employee from voluntarily shared sharing the employee's gratuities with other employees who are another employee if the other employee is directly or indirectly part of the chain of service and whose the other employee's duties are not primarily managerial or supervisory.
(e) The employee was employee's employer informed by the employer the employee of the provisions of this section, in writing, at or before the time of hire, and the employee gave written consent.
(2) For purposes of subsection (1) the The minimum hourly wage rate of an employee shall be 48% described in subsection (1) is as follows:
(a) Beginning February 21, 2025, 38% of the minimum hourly wage rate established under section 4.
(b) Beginning January 1, 2026, 40% of the minimum hourly wage rate established under section 4. effective January 1, 2019; beginning
(c) Beginning January 1, 2027, 42% of the minimum hourly wage rate established under section 4.
(d) Beginning January 1, 2028, 44% of the minimum hourly wage rate established under section 4.
(e) Beginning January 1, 2029, 46% of the minimum hourly wage rate established under section 4.
(f) Beginning January 1, 2020, it shall be 60% 2030, 48% of the minimum hourly wage rate established under section 4. ; beginning
(g) Beginning January 1, 2021, it shall be 70% 2031, 50% 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 Except as otherwise provided under subsection (1)(d), gratuities remain the 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 employee's employer pays the employee lower tipped the minimum hourly wage described in rate established under subsection (2) or the full minimum hourly wage rate established under section 4. Gratuities and service charges paid to an employee are in addition to, and may do not count towards, toward, wages due to the employee.
(5) Employers must shall provide employees and consumers written notice of their the employer's plan to distribute service charges.
(6) Employer An employer shall keep records showing that show compliance with provisions of Section 4d this section for no not less than 3 years from after the date of an employee's last pay period.
Sec. 9. (1) If an employer violates this act, the employee affected by the violation, at any time within 3 years, may do any of the following:
(a) Bring a civil action for the recovery of the difference between the amount paid and the amount that, but for the violation, would have been paid the employee under this act and an equal additional amount as liquidated damages together with costs and reasonable attorney fees as are allowed by the court.
(b) File a claim with the commissioner director who shall investigate the claim.
(2) If the commissioner director determines there is reasonable cause to believe that the employer has violated this act and the commissioner director is subsequently unable to obtain voluntary compliance by the employer within a reasonable period of time, the commissioner director shall bring a civil action under subsection (1)(a). The commissioner director may investigate and file a civil action under subsection (1)(a) on behalf of all employees of that employer who are similarly situated at the same work site and who have not brought a civil action under subsection (1)(a). A contract or agreement between the employer and the employee or any acceptance of a lesser wage by the employee is not a bar to the action.
(3) In Except as otherwise provided in subsection (4), in addition to bearing liability for civil remedies described in this section, an employer who fails to pay the minimum hourly wage in violation of this act, or who that violates a provision of section 4a governing an employee's compensatory time, is subject to a civil fine of not more than $1,000.00.
(4) An employer that fails to pay the minimum hourly wage to an employee as described in section 4d(1) is subject to a civil fine of not more than $2,500.00.
Sec. 10. (1) This act does not apply to an employer that is subject to the minimum wage provisions of the fair labor standards act of 1938, 29 USC 201 to 219, unless the application of those federal minimum wage provisions to the employer would result in a lower minimum hourly wage than provided in under this act. Each of the following exceptions applies to If an employer who is subject to this act only by application of this subsection, :
(a) Section 4a does not apply.
(b) This this act does not apply to an the employer's employee who is exempt from the minimum wage requirements of the fair labor standards act of 1938, 29 USC 201 to 219.
(2) Notwithstanding subsection (1), an employee shall must be paid in accordance with the minimum wage and overtime compensation requirements of sections 4 and 4a if the employee meets either of the following conditions:
(a) He or she The employee is employed in domestic service employment to provide companionship services as that term is defined in 29 CFR 552.6 for individuals who, because of age or infirmity, are unable to care for themselves and is not a live-in domestic service employee as described in 29 CFR 552.102.
(b) He or she The employee is employed to provide child care, childcare, but is not a live-in domestic service employee as described in 29 CFR 552.102. However, the requirements of sections 4 and 4a do not apply if the employee meets all the following conditions:
(i) (i) He or she is under Is younger than the age of 18.
(ii) (ii) He or she provides Provides services on a casual basis as that term is defined in 29 CFR 552.5.
(iii) (iii) He or she provides Provides services that do not regularly exceed 20 hours per week, in the aggregate.
(3) This act does not apply to persons individuals employed in summer camps for not more than 4 months or to employees who are covered under section 14 of the fair labor standards act of 1938, 29 USC 214.
(4) This act does not apply to agricultural fruit growers, pickle growers and tomato growers, or other agricultural employers who traditionally contract for harvesting on a piecework basis, as to those employees used for harvesting, until the board has acquired sufficient data to determine an adequate basis to establish a scale of piecework and determines a scale equivalent to the prevailing minimum wage for that employment. The piece rate scale shall must be equivalent to the minimum hourly wage in that, if the payment by unit of production is applied to a worker of average ability and diligence in harvesting a particular commodity, he or she the worker receives an amount not less than the hourly minimum wage.
(5) Notwithstanding any other provision of this act, subsection (1)(a) and (b) and subsection (2) do not deprive an employee or any class of employees of any right that existed on September 30, 2006 to receive overtime compensation or to be paid the minimum wage.
Enacting section 1. This amendatory act does not take effect unless House Bill No. 4002 of the 103rd Legislature is enacted into law.