Bill > HB4168

This bill amends Michigan's workforce wage law to further protect tipped workers by preventing employers from using gratuities (tips) across different shifts to calculate minimum wage obligations. Specifically, the bill prohibits employers from offsetting an employee's wages in one pay period by using gratuities earned in excess of the minimum wage difference during another shift. The bill establishes a graduated scale for the minimum hourly wage rate for tipped employees, starting at 38% of the standard minimum wage in February 2025 and increasing to 50% by January 2031. The legislation maintains several key protections for tipped workers, including that gratuities must be fully retained by the employee (with limited exceptions for sharing with other service staff), that employers must inform employees about these provisions in writing before hiring, and that gratuities are in addition to, not a replacement for, regular wages. The bill also requires employers to keep records of compliance for at least three years and provide written notice about service charge distribution. This legislation aims to ensure more transparent and fair compensation practices for workers who receive tips as part of their income.

Business and Industry

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4168