2003 House Bill 4160

Ban local "living wage" ordinances

Introduced in the House

Feb. 5, 2003

Introduced by Rep. Fulton Sheen (R-88)

To prohibit local governments from enacting or enforcing "living wage" ordinances which are different from the state minimum wage act. “Living wage” ordinances passed by municipalities prohibit employers who do business with the municipality from paying employees less than an amount set by the municipality’s legislative body. These amounts range from $8 to $12 or more, with or without benefits.

Referred to the Committee on Employee Relations, Training, and Safety

Feb. 20, 2003

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Feb. 25, 2003

Substitute offered

To replace the previous version of the bill with one which revises the state minimum wage law so the Michigan minimum lawful rate would automatically change if the federal rate is changed.

The substitute passed by voice vote

Amendment offered by Rep. Gene DeRossett (R-52)

To place explicit language in the bill to the effect that it does not prohibit a municipality from enforcing its own or the state's prevailing wage law. “Prevailing wage” laws prohibit awarding contracts to contractors who submit the lowest bid unless the contractor pays "prevailing wages," which are based on union pay scales in a particular part of a geographic region. These wage rates may be above market rates, which can make projects subject to them cost more than comparable projects not affected by this particular contract prohibition.

The amendment failed 54 to 55 (details)

Amendment offered by Rep. Randy Richardville (R-56)

To clarify a reference to the federal minimum wage law in the committee-adopted amendment that revises the states minimum wage law so that the Michigan minimum lawful rate automatically changes if the federal rate is changed.

The amendment passed by voice vote

Amendment offered by Rep. Paul Condino (D-35)

To "grandfather" the living wage laws which have already been adopted by 13 Michigan local governments, including: Detroit, Allen Park, Ann Arbor, Eastpointe, Ferndale, Monroe County, Pittsfield Township, Southfield, Warren, Washtenaw County, Washtenaw County Road Commission, Ypsilanti and Ypsilanti Township. These local ordinances would still be enforceable, notwithstanding the bill's preemption of new ones.

The amendment failed 52 to 56 (details)

Amendment offered by Rep. Steve Bieda (D-25)

To tie-bar the bill to House Bill 4165, which would prohibit paying an employee a minimum wage that is less than $5.65 an hour, instead of the current $5.15 hour, and index the amount to inflation.

The amendment failed 47 to 62 (details)

Amendment offered by Rep. Jack Minore (D-49)

To place language in the bill to the effect that it does not prohibit a municipality from enforcing a local prevailing wage law. “Prevailing wage” laws prohibit awarding contracts to contractors who submit the lowest bid unless the contractor pays "prevailing wages," which are based on union pay scales in a particular part of a geographic region. These wage rates may be above market rates, which can make projects subject to them cost more than comparable projects not affected by this particular contract prohibition.

The amendment failed by voice vote

Passed in the House 58 to 51 (details)

To prohibit local governments from enacting or enforcing "living wage" ordinances which are different from the state minimum wage act. “Living wage” ordinances passed by municipalities prohibit employers who do business with the municipality from paying employees less than an amount set by the municipality’s legislative body. These amounts range from $8 to $12 or more, with or without benefits. The bill would also revise the state minimum wage law so the Michigan minimum lawful rate would automatically change if the federal rate is changed.

Received in the Senate

Feb. 26, 2003

Referred to the Committee on Commerce and Labor

March 25, 2004

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

March 30, 2004

Substitute offered

To replace the previous version of the bill with one that prohibits local governments from imposing a “living wage” requirement on private sector employers that is greater than the state minimum wage. Local governments would not be prohibited from imposing “living wage” requirements on a private vendor who provides goods or services to the local government.

The substitute passed by voice vote

Amendment offered by Sen. Mark Schauer (D-19)

To place explicit language in the bill to the effect that it does not prohibit a municipality from enforcing its own or the state's prevailing wage law. “Prevailing wage” laws prohibit awarding contracts to contractors who submit the lowest bid unless the contractor pays "prevailing wages," which are based on union pay scales in a particular part of a geographic region. These wage rates may be above market rates, which can make projects subject to them cost more than comparable projects not affected by this particular contract prohibition.

The amendment passed 18 to 20 (details)

Amendment offered by Sen. Mark Schauer (D-19)

To "grandfather" contracts previously agreed to under the living wage laws which have already been adopted by local governments.

The amendment failed 16 to 22 (details)

Amendment offered by Sen. Mark Schauer (D-19)

To tie-bar the bill to House Bill 4165, which would prohibit paying an employee a minimum wage that is less than $5.65 an hour, instead of the current $5.15 hour, and index the amount to inflation.

The amendment passed 16 to 22 (details)

Amendment offered by Sen. Mark Schauer (D-19)

To make the state minimum wage the same as the federal minimum wage.

The amendment failed 16 to 22 (details)

Passed in the Senate 22 to 16 (details)

To prohibit local governments from imposing a “living wage” requirement on private sector employers that is greater than the state minimum wage. Local governments would not be prohibited from imposing “living wage” requirements on a private vendor who provides goods or services to the local government.

Received in the House

March 30, 2004

To concur with the Senate-passed version of the bill, which prohibits local governments from imposing a “living wage” requirement on private sector employers that is greater than the state minimum wage. Local governments would not be prohibited from imposing “living wage” requirements on a private vendor who provides goods or services to the local government.

Passed in the House 58 to 47 (details)

Received in the Senate

May 11, 2004