2018 Senate Bill 1171 / Public Act 368

Initiated minimum wage law 're-do'

Introduced in the Senate

Nov. 8, 2018

Introduced by Sen. Dave Hildenbrand (R-29)

To delete the provision of a 2018 <a href="https://www.michiganvotes.org/2018-LIP-4">initiated law</a> that repealed a lower minimum wage imposed of tipped workers, which was 38 percent of the minimum wage for other workers. (Under that law, a tipped-worker’s employer still had to pay the difference between the lower tipped wage amount and the regular minimum wage if tips come up short.) The initiated law was enacted by the legislature in September of 2018 and is now Public Act 337 of 2018.

Referred to the Committee on Government Operations

Nov. 28, 2018

Reported without amendment

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

Passed in the Senate 26 to 11 (details)

To revise an <a href="https://www.michiganvotes.org/2018-LIP-4">initiated law</a> enacted in Sept. 2018 that increased the state minimum wage mandate. The original version of this law was brought to the legislature by a petition drive, and would have increased the current $9.25 minimum to $12 in 2022, and eliminated a separate lower minimum wage that applies to tipped workers. This bill extends the phase-in of the $12 minimum to 2030, keeps a separate and lower minimum wage for tipped workers (employers must still pay the difference if tips come up short of making the regular minimum wage), and eliminates indexing the minimum wage to inflation. Note: Had the legislature not passed the initiated law in September it would have gone on the November ballot, and if voters had approved the measure any changes would have required a 3/4 supermajority vote in the House and Senate.

Received in the House

Nov. 28, 2018

Referred to the Committee on Michigan Competitiveness

Dec. 4, 2018

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Substitute offered by Rep. Abdullah Hammoud (D-15)

To adopt the language of the original initiated legislation placed before the legislature by petition (see <a href="https://www.michiganvotes.org/2018-LIP-4">2018 Legislative Initiative Petition 4</a>).

The substitute failed by voice vote

Amendment offered by Rep. Tim Kelly (R-94)

To adopt a version of the bill that adjusts the minimum wage that would go into effect in 2030 to $12.05, and adjust the separate minimum for tipped workers, which would become 38 percent of the regular minimum, the same as the previous law (employers are still responsible to make up the difference if tips come up short).

The amendment passed by voice vote

Passed in the House 60 to 48 (details)

To revise an <a href="https://www.michiganvotes.org/2018-LIP-4">initiated law</a> enacted in Sept. 2018 that increased the state minimum wage mandate. The original version of this law was brought to the legislature by a petition drive, and would have increased the current $9.25 minimum to $12 in 2022, and eliminated a separate lower minimum wage that applies to tipped workers. This bill extends the phase-in of the $12.05 minimum to 2030, keeps a separate and lower minimum wage for tipped workers (employers must still pay the difference if tips come up short of making the regular minimum wage), and eliminates indexing the minimum wage to inflation. Note: Had the legislature not passed the initiated law in September it would have gone on the November ballot, and if voters had approved the measure any changes would have required a 3/4 supermajority vote in the House and Senate.

Received in the Senate

Dec. 4, 2018

Passed in the Senate 26 to 12 (details)

To concur with the House-passed version of the bill.

Signed by Gov. Rick Snyder

Dec. 13, 2018