2014 Senate Bill 934 / Public Act 138

Preempt $10.10 minimum wage initiative; hike mandated minimum

Introduced in the Senate

May 8, 2014

Introduced by Sen. Randy Richardville (R-17)

To repeal the current state minimum wage law that makes it unlawful to employ a worker for less than $7.40 an hour, and replace it with a new law increasing the mandated minimum to $8.15 an hour, and increasing the minimum amount the employer of a worker who receives tips must pay from $2.65 to $2.93 an hour. (A tipped-worker’s employer must pay the difference between this amount and the regular mandated minimum if tips come up short).<br> The bill is widely regarded as a gambit to stop an “initiated law” from being placed on the November 2014 ballot, which would increase the mandated minimums to $10.10 for both tipped and non-tipped employees, and index this to inflation. If the bill repeals the statute the initiative would amend, the initiative would become moot. The bill was introduced a few weeks before petitions being circulated by a group funded by unions and other labor interests must be submitted for their initiative to be on the 2014 general election ballot.

Referred to the Committee of the Whole

May 15, 2014

Substitute offered

The substitute passed by voice vote

Amendment offered by Sen. Arlan Meekhof (R-30)

To revise details of the inflation indexing formula.

The amendment passed by voice vote

Amendment offered by Sen. Arlan Meekhof (R-30)

To cap the amount the mandated minimum wage could go up in one year due to inflation at 4 percent.

The amendment passed by voice vote

Amendment offered by Sen. Gretchen Whitmer (D-23)

To replace a provision exempting employers of individuals under age 18 from the mandated minimum with a provision mandating a minimum wage for young people that is 85 percent of the amount for adults.

The amendment passed by voice vote

Passed in the Senate 24 to 14 (details)

To repeal the current state minimum wage law that makes it unlawful to employ a worker for less than $7.40 an hour, and replace it with a new law gradually increasing the mandated minimum to $9.20 an hour, and increasing the minimum amount the employer of a worker who receives tips must pay from $2.65 to $2.93 an hour. (A tipped-worker’s employer must pay the difference between this amount and the regular mandated minimum if tips come up short). These amounts would increase with inflation (with a 4 percent annual cap), and the state would be required to reimburse local governments for any cost increases caused by the mandated wage hikes.<br>As introduced the bill was seen as a Republican gambit to keep an “initiated law” off the November ballot, to hike the mandated minimums to $10.10 for both tipped and non-tipped employees. It became a bipartisan gambit after negotiations for the higher rate and inflation indexing brought most Democrats on board.

Received in the House

May 20, 2014

Referred to the Committee on Government Operations

May 27, 2014

Reported without amendment

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

Amendment offered

To adopt a version of the bill that would gradually raise the mandated minimum wage to $8.50 per hour, with no automatic inflation indexing.

The amendment failed by voice vote

Substitute offered by Rep. Jeff Farrington (R-30)

To adopt a version of the bill with higher mandated minimums and inflation indexing.

The substitute passed by voice vote

Amendment offered by Rep. Ellen Lipton (D-27)

To increase the "tipped" worker minimum wage to 50 percent of the regular minimum wage.

The amendment failed by voice vote

Amendment offered by Rep. Jeff Farrington (R-30)

To revise a detail of the forumula used to reimburse local governments for cost increases generated by the bill.

The amendment passed by voice vote

Passed in the House 76 to 34 (details)

To repeal the current state minimum wage law that makes it unlawful to employ a worker for less than $7.40 an hour, and replace it with a new law gradually increasing the mandated minimum to $9.25 an hour in 2018. The minimum amount the employer of a worker who receives tips must pay would rise from $2.65 to an amount that is 38 percent of the non-tipped minimum, or $3.52. (A tipped-worker’s employer must pay the difference between this amount and the regular minimum if tips come up short).<br>These figures would increase with inflation (with a 3.5 percent annual cap), and the state would be required to reimburse local governments for any cost increases caused by the mandated wage hikes. The wage mandates would be suspended if the state unemployment rate rises above 8.5 percent.<br>As introduced the bill was seen as a Republican gambit to keep an “initiated law” off the November ballot, to hike the mandated minimums to $10.10 for both tipped and non-tipped employees. It became a bipartisan gambit after negotiations for the higher rate and inflation indexing brought most Democrats on board..

Received in the Senate

May 27, 2014

Passed in the Senate 24 to 12 (details)

To concur with the House-passed version of the bill, which mandates a higher mandated minimum wage and revises details of the inflation indexing.

Signed by Gov. Rick Snyder

May 27, 2014