Bill > HB4492

This bill amends the "Improved workforce opportunity wage act" to allow employers to require employees who receive gratuities, which are defined as tips or voluntary monetary contributions reported to the employer for federal tax purposes, to share those gratuities with other employees, provided that the employee receiving the gratuities still retains an amount that meets a specific threshold. This threshold is tied to the difference between the standard minimum wage and a reduced tipped employee wage, which is set to gradually increase from 38% of the standard minimum wage in February 2025 to 50% by January 2031. The bill also removes a previous provision that stated gratuities must be entirely retained by the employee unless voluntarily shared with other employees directly involved in the service chain and not in managerial roles, and it requires employers to inform employees in writing about these gratuity sharing provisions.

Government Affairs, Labor and Employment

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4492