2006 Senate Bill 1388

Correct "minimum wage" increase unintended consequences

Introduced in the Senate

Aug. 9, 2006

Introduced by Sen. Bob Emerson (D-27)

To undo provisions in recent <a href="http://www.michiganvotes.org/2005-SB-318">changes</a> to the state law that makes it unlawful to employ a worker for less than a certain dollar amount set by the government ("minimum wage"), so as to maintain the status quo with respect to certain exemptions to overtime pay requirements. An unintended consequence of the recent changes was to apply the overtime pay requirement (one-and-one half times the regular hourly wage rate) to many professions that had previously been exempt, because the norm in them is fewer shifts with longer hours per shift (hospital nurses, long-haul truckers, certain salespersons on commission, firefighters, certain media personnel, etc.) Also, to eliminate the separate (and lower) state-mandated minimum wage for workers who earn tip income.

Referred to the Committee on Government Operations and Reform