The bill amends the Improved Workforce Opportunity Wage Act, which sets minimum wage standards and addresses wage discrimination in Michigan. Key changes include the establishment of a minimum hourly wage that will increase incrementally, starting at $12.48 on February 21, 2025, and reaching $15.00 by January 1, 2027. Additionally, beginning in October 2027, the minimum wage will be adjusted annually based on inflation, unless the state's unemployment rate exceeds 8.5%. The bill also outlines specific conditions under which employees who receive gratuities can have their minimum wage calculated as a percentage of the standard minimum wage, with gradual increases over the years.

Furthermore, the bill enhances enforcement mechanisms for violations of the wage provisions, 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 from the state minimum wage requirements unless those federal provisions result in a lower wage. 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