MichiganSB 00082025-2026 Regular SessionSenateWALLET

Labor: hours and wages; minimum hourly wage rate; modify Amends secs. 2, 4, 4d, 9 & 10 of 2018 PA 337 (MCL 408.932 et seq.). TIE BAR WITH: HB 4002'25Last Action: ASSIGNED PA 0001'25 WITH IMMEDIATE EFFECT

Sponsored By: Kevin Hertel (Democratic)

Became Law

Labor: hours and wages

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 0 costs, 4 mixed.

Michigan workers get $15 minimum by 2027

The state minimum wage is $12.48 starting Feb. 21, 2025. It rises to $13.73 on Jan. 1, 2026, and to $15.00 on Jan. 1, 2027. Starting Oct. 2027, the state treasurer sets yearly inflation raises using the Midwest CPI‑U, posts by Nov. 1, and they take effect Jan. 1. If Michigan’s unemployment rate for the prior year is 8.5% or higher, that CPI raise does not happen.

Stronger pay and rights for tipped workers

If you are a tipped worker, your cash wage is a share of the regular minimum: 38% on Feb. 21, 2025; 40% in 2026; 42% in 2027; 44% in 2028; 46% in 2029; 48% in 2030; and 50% in 2031. The reduced rate applies only when tips cover the gap, you keep your tips (except allowed pools), you report tips for FICA, and you got written notice and gave written consent. Tips and service charges are your money and do not count toward the employer’s wage duty. If a business adds a service charge, it must give written notice to workers and customers explaining how it is shared. Employers must keep tip and wage records for at least three years after your last paycheck, and can be fined up to $2,500 for underpaying the tipped minimum.

Stronger wage enforcement and worker lawsuits

You can sue for underpaid wages within three years. You can recover the unpaid amount, the same amount again as damages, plus costs and reasonable lawyer fees. The labor director can investigate and sue for groups of workers at the same work site. Employers who fail to pay minimum wage or break comp‑time rules face civil fines up to $1,000, in addition to other liability.

Who must follow Michigan wage law

A business that employs two or more people at the same time in a year is covered for the rest of that year. Except as stated in a franchise deal, a franchisee is the sole employer for workers it pays or covers with a plan. An employee is someone at least 16 years old, including some minors under the youth employment law. State wage rules yield to federal law when federal pay is not lower. Some domestic companions and non‑live‑in childcare workers still must get state minimum wage, unless they meet narrow casual‑worker tests. Summer camp staff working four months or less are exempt. Some farm piece‑rate harvesters stay exempt until a state board sets an equivalent piece‑rate.

Sponsors & Cosponsors

Sponsor

  • Kevin Hertel

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 89 • No: 52

House vote 2/19/2025

passed; given immediate effect

Yes: 69 • No: 40 • Other: 1

Senate vote 2/13/2025

PASSED

Yes: 20 • No: 12 • Other: 5

Actions Timeline

  1. ASSIGNED PA 0001'25 WITH IMMEDIATE EFFECT

    2/25/2025Senate
  2. FILED WITH SECRETARY OF STATE 2/21/2025 1:08 PM

    2/25/2025Senate
  3. APPROVED BY GOVERNOR 2/21/2025 11:38 AM

    2/25/2025Senate
  4. PRESENTED TO GOVERNOR 2/20/2025 8:42 PM

    2/20/2025Senate
  5. ORDERED ENROLLED

    2/20/2025Senate
  6. FULL TITLE AGREED TO

    2/20/2025Senate
  7. GIVEN IMMEDIATE EFFECT

    2/20/2025Senate
  8. returned to Senate

    2/19/2025House
  9. inserted full title

    2/19/2025House
  10. passed; given immediate effect Roll Call #8 Yeas 69 Nays 40 Excused 0 Not Voting 1

    2/19/2025House
  11. read a third time

    2/19/2025House
  12. placed on immediate passage

    2/19/2025House
  13. placed on third reading

    2/19/2025House
  14. read a second time

    2/19/2025House
  15. placed on second reading

    2/19/2025House
  16. motion to discharge committee approved

    2/19/2025House
  17. notice given to discharge committee

    2/18/2025House
  18. referred to Committee on Select Committee on Protecting Michigan Employees and Small Businesses

    2/18/2025House
  19. read a first time

    2/18/2025House
  20. received on 02/14/2024

    2/18/2025House
  21. PASSED ROLL CALL # 7 YEAS 20 NAYS 12 EXCUSED 5 NOT VOTING 0

    2/13/2025Senate
  22. SUBSTITUTE (S-10) ADOPTED

    2/13/2025Senate
  23. PLACED ON IMMEDIATE PASSAGE

    2/13/2025Senate
  24. RULES SUSPENDED

    2/13/2025Senate
  25. PLACED ON ORDER OF THIRD READING

    2/13/2025Senate

Bill Text

  • Public Act

    2/21/2025

  • As Passed by the House

    2/19/2025

  • As Passed by the Senate

    2/13/2025

  • Introduced

    1/8/2025

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