SENATE BILL No. 319

 

 

March 17, 2005, Introduced by Senators CLARKE, SCHAUER, EMERSON, BRATER, PRUSI, CLARK-COLEMAN, BASHAM, OLSHOVE, JACOBS, LELAND, BERNERO, SWITALSKI, THOMAS and SCOTT and referred to the Committee on Commerce and Labor.

 

 

 

 

     A bill to amend 1964 PA 154, entitled

 

"Minimum wage law of 1964,"

 

by amending section 7a (MCL 408.387a), as amended by 1997 PA 1.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 7a. (1) The minimum hourly wage rate of an employee shall

 

be $2.65 per hour and shall increase to $3.40 on July 1, 2005, to

 

$4.15 on January 1, 2006, and to $4.60 on January 1, 2007, 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  the wage set forth

 

under subsection (1) 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  contributions act,  purposes  26 USC 3101 to 3128.

 

     (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  contributions

 

act,  chapter 21 of subtitle C of the internal revenue code of

 

1986, 26  U.S.C.  USC 3101 to 3128.