April 16, 2013, Introduced by Reps. Tlaib, Switalski, Ananich, Roberts, Kosowski, Hovey-Wright, Banks, Durhal, Stallworth, Talabi and Lipton and referred to the Committee on Commerce.
A bill to amend 1964 PA 154, entitled
"Minimum wage law of 1964,"
by amending sections 4, 4b, and 7a (MCL 408.384, 408.384b, and
408.387a), section 4 as amended by 2006 PA 81, section 4b as
amended by 2006 PA 375, and section 7a as amended by 1997 PA 1.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4. (1) Subject to the exceptions specified in this act,
the minimum hourly wage rate shall be:
(a) Beginning September 1, 1997, $5.15.
(b) Beginning October 1, 2006, $6.95.
(c) Beginning July 1, 2007, $7.15.
(d) Beginning July 1, 2008, $7.40.
(e) Beginning January 1, 2014, the higher of the minimum wage
set forth in the fair labor standards act of 1938, 29 USC 201 to
219, or $7.90.
(f) Beginning July 1, 2014, the higher of the minimum wage set
forth in the fair labor standards act of 1938, 29 USC 201 to 219,
or $8.40.
(g) Beginning January 1, 2015, the higher of the minimum wage
set forth in the fair labor standards act of 1938, 29 USC 201 to
219, or $9.00.
(h) Beginning July 1, 2015, the higher of the minimum wage set
forth in the fair labor standards act of 1938, 29 USC 201 to 219,
or $9.50.
(i) Beginning January 1, 2016, the higher of the minimum wage
set forth in the fair labor standards act of 1938, 29 USC 201 to
219, or $10.00.
(2)
Notwithstanding subsection (1), if a ballot proposal that
establishes
a minimum wage is approved by the majority of electors
voting
on the question at the general election on November 7, 2006,
the
minimum wage shall be as established in the ballot proposal.
(2) In January of each year following a year in which the
there was no change to the higher of the state or federal minimum
wage rate other than an adjustment pursuant to this subsection, the
wage and hours division of the department of licensing and
regulatory affairs shall calculate an adjusted minimum wage rate.
The adjustment shall increase the minimum wage applicable in the
preceding year by the rate of inflation. The increase shall be
calculated by multiplying the otherwise applicable minimum wage 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 upon the most recent
12-month period for which data are available. The adjusted minimum
wage rate shall be published by February 1 of the year it is
calculated and is effective beginning April 1 of that year.
Sec. 4b. (1) An employer may pay a new employee who is less
than 20 years of age a training hourly wage of $4.25 for the first
90 days of that employee's employment. The hourly wage authorized
under this subsection is in lieu of the minimum hourly wage
otherwise prescribed by this act.
(2)
Except Until January 1,
2014, except as provided in
subsection (1), the minimum hourly wage for an employee who is less
than 18 years of age is 85% of the general minimum hourly wage
established in section 4.
(3) An employer shall not displace an employee to hire an
individual at the hourly wage authorized under this section. As
used in this subsection, "displace" includes termination of
employment or any reduction of hours, wages, or employment
benefits.
(4) A person who violates subsection (3) is subject to a civil
fine of not more than $1,000.00.
Sec. 7a. (1) The minimum hourly wage rate of an employee shall
be
$2.65 per hour as provided
in subsection (2), if all of the
following occur:
(a) The employee receives gratuities in the course of his or
her employment.
(b) The sum of the gratuities described in subdivision (a),
equal
or exceed the difference between $2.65 per hour and plus the
amount under subsection (2), equals or exceeds 70% of the minimum
hourly wage established under section 4.
(c) The gratuities are proven gratuities as indicated by the
employee's declaration for federal insurance contribution act
purposes.
(d) The employee was informed by the employer of the
provisions of this section.
(2) For employees who meet the conditions under subsection
(1), the minimum hourly wage rate shall be as follows:
(a) For the 1-year period beginning January 1, 2014, $3.00.
(b) For each 1-year period beginning January 1, 2015 until the
rate is equal to 70% of the minimum hourly wage rate established
under section 4, the rate shall be the previous year's minimum
hourly wage rate plus the lesser of $0.85 or the amount necessary
to equal 70% of the minimum hourly wage rate established in section
4.
(c) After the rate calculated under subdivision (b) equals 70%
of the minimum hourly rate established under section (4), the rate
shall be 70% of the minimum hourly wage rate established under
section (4).
(d) The rate calculated under subdivision (b) or (c) shall be
rounded to the nearest $0.05.
(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 contribution act, chapter 21
of
subtitle C of the internal revenue code of 1986, 26 U.S.C. USC
3101 to 3128.