HOUSE BILL No. 4452

 

March 13, 2007, Introduced by Reps. Cheeks, Condino, Miller, Meadows, Byrnes, Scott, Virgil Smith, Espinoza, Leland, Wojno, Kathleen Law, Lemmons, Bennett, Valentine, Donigan, Young, Robert Jones, Johnson, Vagnozzi and Jackson and referred to the Committee on 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, and

 

by adding section 7b.

 

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 $4.45 on the effective date

 

of the amendatory act that added section 7b, to $4.65 on July 1,

 

2007, and to $4.90 on July 1, 2008, 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.

 

     Sec. 7b. The minimum wage required under sections 4 and 7a

 

shall be adjusted annually to reflect the cumulative annual

 

percentage change in the consumer price index. As used in this

 

section, "consumer price index" means the most recent comprehensive

 

index of consumer prices available for this state from the bureau

 

of labor statistics of the United States department of labor.