HOUSE BILL No. 5579

 

May 14, 2014, Introduced by Rep. O'Brien 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.

 

     (a) (d) Beginning July 1, 2008, $7.40.

 

     (b) Beginning December 1, 2014, $8.15.

 

     (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.

 

     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 as provided in subsection (1), the minimum hourly

 

wage for an employee who is less than 18 21 years of age is 85% of

 

the general minimum hourly wage established in section 4.$7.40.

 

     (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, and beginning December 1, 2014, $2.75 per hour,

 

if all of the following occur:

 

     (a) The employee receives gratuities in the course of his or

 

her employment.

 

     (b) The gratuities described in subdivision (a) equal or

 

exceed the difference between $2.65 per hour, or beginning December

 

1, 2014, $2.75 per hour, and 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) 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.