SENATE BILL No. 1171

 

 

November 8, 2018, Introduced by Senator HILDENBRAND and referred to the Committee on Government Operations.

 

 

 

     A bill to amend 2018 PA 337, entitled

 

"Improved workforce opportunity wage act,"

 

by amending sections 2 and 4d (MCL 408.932 and 408.934d).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. As used in this act:

 

     (a) "Commissioner" means the director of the department of

 

licensing and regulatory affairs.

 

     (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, and a person acting in the interest of the

 

employer, who 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.

 

     (e) "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 his or her employer for purposes

 

of the federal insurance contributions act, 26 USC 3101 to 3128.

 

     Sec. 4d. (1) The minimum hourly wage rate of an employee shall

 

be as is 38% of the minimum hourly wage rate established under

 

subsection (2) section 4 if all of the following occur:

 

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

 

her employment.

 

     (b) The If the gratuities described in subdivision (a) plus

 

the minimum hourly wage rate under this subsection do not equal or

 

exceed the difference between the minimum hourly wage rate

 

otherwise established under subsection (2) and the minimum hourly

 

wage established under section 4, the employer pays any shortfall

 

to the employee.

 

     (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 entirety of the gratuities are retained by the

 

employee who receives them, except as voluntarily shared with other

 

employees who are directly or indirectly part of the chain of

 

service and whose duties are not primarily managerial or

 

supervisory.

 

     (d) (e) The employee was informed by the employer of the

 

provisions of this section. in writing, at or before the time of

 

hire, and gave written consent.

 

     (2) For purposes of subsection (1) the minimum hourly wage

 

rate of an employee shall be 48% of the minimum hourly wage rate

 

established under section 4 effective January 1, 2019; beginning

 

January 1, 2020, it shall be 60% of the minimum hourly wage rate

 

established under section 4; beginning January 1, 2021, it shall be

 

70% 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 remain 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 employer pays the lower tipped hourly wage described in

 

subsection (2) or the full minimum hourly rate established under

 

section 4. Gratuities and service charges paid to an employee are

 

in addition to, and may not count towards, wages due to the

 

employee.

 

     (5) Employers must provide employees and consumers written

 

notice of their plan to distribute service charges.

 

     (6) Employer shall keep records showing compliance with

 

provisions of Section 4d for no less than 3 years from the date of

 

employee’s last pay period.