The bill amends the Improved Workforce Opportunity Wage Act, which establishes minimum wage standards and prohibits wage discrimination in Michigan. Key changes include the introduction of a tiered minimum wage increase schedule, starting at $12.48 per hour on February 21, 2025, and reaching $15.00 by January 1, 2027. Additionally, the bill mandates annual adjustments to the minimum wage based on inflation, contingent upon the state's unemployment rate being below 8.5%. It also outlines specific conditions under which employees receiving gratuities can have their minimum wage calculated as a percentage of the standard minimum wage, gradually increasing from 38% in 2025 to 50% by 2031.

Furthermore, the bill enhances enforcement mechanisms for violations of the wage act, allowing employees to pursue civil actions for unpaid wages and establishing civil fines for employers who fail to comply. It clarifies that certain employers, such as those covered by the Fair Labor Standards Act, may be exempt unless their federal minimum wage is lower than the state minimum. The act will take immediate effect upon the enactment of House Bill No. 4002 of the 103rd Legislature.

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