The bill amends the Improved Workforce Opportunity Wage Act, which establishes minimum wage standards and prohibits wage discrimination in Michigan. Key provisions include setting a minimum hourly wage that will gradually increase to $15.00 by January 1, 2027, with subsequent adjustments based on inflation starting in 2028. Additionally, the bill outlines specific conditions under which employees who receive gratuities can have their minimum wage calculated as a percentage of the standard minimum wage, starting at 38% in 2025 and increasing to 50% by 2031. Employers are required to inform employees about these provisions and maintain records for compliance.

The bill also enhances enforcement mechanisms for violations of the wage standards, allowing employees to pursue civil actions for unpaid wages and imposing civil fines on employers who fail to comply. Notably, the act does not apply to certain employers covered by federal minimum wage laws unless those laws provide a lower wage. Furthermore, specific exemptions are included for domestic service employees, summer camp workers, and agricultural workers under certain conditions. The enactment of this bill is contingent upon the passage of House Bill No. 4002.

Statutes affected:
Substitute (S-10): 408.932
Senate Introduced Bill: 408.932
As Passed by the Senate: 408.932
As Passed by the House: 408.932
Public Act: 408.932
Senate Enrolled Bill: 408.932