HB-4052, As Passed House, June 16, 2015

HOUSE SUBSTITUTE FOR SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4052

A bill to limit the powers of local governmental bodies

regarding the regulation of terms and conditions of employment

within local government boundaries for employees of nonpublic

employers.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. This act shall be known and may be cited as the "local

government labor regulatory limitation act".

Sec. 2. The legislature finds and declares that regulation of

the employment relationship between a nonpublic employer and its

employees is a matter of state concern and is outside the express

or implied authority of local governmental bodies to regulate,

absent express delegation of that authority to the local

governmental body.

Sec. 3. As used in this act:

(a) "Educational institution" means any of the following:

(i) A school district, an intermediate school district, or a

public school academy as those terms are defined in sections 4 to 6

of the revised school code, 1976 PA 451, MCL 380.4 to 380.6.

(ii) A community college established under the community

college act of 1966, 1966 PA 331, MCL 389.1 to 389.195, or under

part 25 of the revised school code, 1976 PA 451, MCL 380.1601 to

1607.

(b) "Employee" means a person employed in this state by an

employer.

intending to engage in a commercial activity, enterprise, or

business in this state, but excludes a local governmental body or

an educational institution.

(d) "Local governmental body" means any local government or

its subdivision, including, but not limited to, a city, village,

township, county, or educational institution; a local public

authority, agency, board, commission, or other local governmental,

quasi-governmental, or quasi-public body; or a public body that

acts or purports to act in a commercial, business, economic

development, or similar capacity for a local government or its

subdivision. Local governmental body does not include an authority

established by interlocal agreement under the urban cooperation act

of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, to which this

state is a party.

(e) "Ordinance, local policy, or local resolution" does not

include the terms of an agreement voluntarily offered to a local

governmental body by an owner, purchaser, or developer of property.

Sec. 4. A local governmental body shall not adopt, enforce, or

administer an ordinance, local policy, or local resolution

regulating information an employer or potential employer must

request, require, or exclude on an application for employment from

an employee or a potential employee. This section does not prohibit

an ordinance, local policy, or local resolution requiring a

criminal background check for an employee or potential employee in

connection with the receipt of a license or permit from a local

governmental body.

Sec. 5. A local governmental body shall not adopt, enforce, or

administer an ordinance, local policy, or local resolution

requiring an employer to pay to an employee a wage higher than the

state minimum hourly wage rate determined under section 4 of the

workforce opportunity wage act, 2014 PA 138, MCL 408.414, or, if

applicable to the employer, the minimum wage provisions of the fair

labor standards act of 1938, 29 USC 201 to 219, unless those

federal minimum wage provisions would result in a lower minimum

hourly wage than provided under state law.

Sec. 6. A local governmental body shall not adopt, enforce, or

administer an ordinance, local policy, or local resolution

requiring an employer to pay to an employee a wage or fringe

benefit based on wage and fringe benefit rates prevailing in the

locality. This section does not apply to state projects subject to

1965 PA 166, MCL 408.551 to 408.558.

Sec. 7. A local governmental body shall not adopt, enforce, or

administer an ordinance, local policy, or local resolution

regulating work stoppage or strike activity of employers and their

employees or the means by which employees may organize.

Sec. 8. A local governmental body shall not adopt, enforce, or

administer an ordinance, local policy, or local resolution

requiring an employer to provide to an employee paid or unpaid

leave time.

Sec. 9. A local governmental body shall not adopt, enforce, or

administer an ordinance, local policy, or local resolution

regulating hours and scheduling that an employer is required to

provide to employees. This section does not prohibit an ordinance,

local policy, or local resolution that limits the hours a business

may operate.

Sec. 10. A local governmental body shall not adopt, enforce,

or administer an ordinance, local policy, or local resolution

requiring an employer or its employees to participate in any

educational apprenticeship or apprenticeship training program that

is not required by state or federal law.

Sec. 11. A local governmental body shall not adopt, enforce,

or administer an ordinance, local policy, or local resolution

requiring an employer to provide to an employee any specific fringe

benefit or any other benefit for which the employer would incur an

expense, including, but not limited to, those enumerated in

sections 6 to 10.

Sec. 12. A local governmental body shall not adopt, enforce,

or administer an ordinance, local policy, or local resolution

regulating or creating administrative or judicial remedies for

wage, hour, or benefit disputes, including, but not limited to, any

benefits described in sections 6 to 11.

Sec. 13. If any parts of this act are found to be in conflict

with the state constitution of 1963, the United States

constitution, or federal law, this act shall be implemented to the

maximum extent that the state constitution of 1963, the United

States constitution, or federal law permit. Any provision held

invalid or inoperative is severable from the remaining portions of

this act.

Sec. 14. This act does not prohibit a local governmental body

from adopting or enforcing an ordinance, policy, or resolution

prohibiting employment discrimination.

Sec. 15. Subject to sections 5 to 8 and 11, this act does not

prohibit a local governmental body from adopting, enforcing, or

administering an ordinance, local policy, or local resolution that

provides for the terms and conditions of a voluntary agreement

between an employer and the local governmental body in connection

with the provision of services directly to the local governmental

body or in connection with the receipt of a grant, tax abatement,

or tax credit from the local governmental body.

Sec. 16. This act does not prohibit a local governmental body

from enforcing a written agreement voluntarily entered into and in

effect prior to October 1, 2015.

Enacting section 1. This act applies to ordinances, local

policies, and local resolutions adopted after December 31, 2014.

Nothing in this act shall be considered as an explicit or implicit

authorization or recognition of the validity of any ordinance,

local policy, or local resolution adopted before January 1, 2015.

Nothing in this act authorizes a local governmental body to adopt

an ordinance, local policy, or local resolution regulating the

employment relationship as to matters described in this act, and

nothing in this act shall be construed as an express or implied

recognition of any such authority that may or may not exist

elsewhere in state law. Whether a local governmental body had the

authority, before January 1, 2015, to adopt an ordinance, local

policy, or local resolution regulating the employment relationship

as to matters described in this act is a separate question that

this act does not address. This act is not intended to be construed

to impact the reasoning or outcome of pending litigation in any

way, for or against any particular legal position.