All Roll Calls
Yes: 89 • No: 52
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)
Signed by Governor
Labor: hours and wages
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Higher minimum pay for Michigan workers
Michigan’s minimum hourly wage rises to $12.48 on February 21, 2025, $13.73 on January 1, 2026, and $15.00 on January 1, 2027. Starting in 2028, annual increases follow inflation, measured by the Midwest consumer price index. The state treasurer calculates adjustments starting in October 2027 and publishes them by November 1 for the following January 1. An inflation increase does not take effect if the preceding year’s Michigan unemployment rate is 8.5% or higher. Workers can sue for unpaid wages, added damages, court costs, and attorney fees, or file a state claim. The labor department must investigate claims and can sue for similarly situated workers at the same workplace when voluntary compliance fails. Contract terms cannot block these remedies.
Higher pay floors for tipped workers
Employers’ minimum pay for tipped workers is 38% of Michigan’s regular minimum wage starting February 21, 2025. Each January 1, it rises: 40% in 2026, 42% in 2027, 44% in 2028, 46% in 2029, 48% in 2030, and 50% in 2031. Employers can use this lower rate only when reported tips cover the gap to the regular minimum wage. Tips must be verifiable through federal payroll tax reporting. Workers must receive written notice at or before hire and give written consent; otherwise, employers owe the full minimum wage. Tips belong to workers, with limited voluntary pooling or sharing among nonmanagerial service staff. Employers must give workers written notice of service-charge distribution plans and keep compliance records for three years after their last pay period. Employers face civil fines of up to $2,500 per tipped minimum-wage violation, rather than the general $1,000 maximum. The general maximum also applies to violations of compensatory-time rules.
Michigan wage protections reach more workers
Michigan’s higher wage floor applies when federal minimum-wage rules otherwise give a covered employer a lower rate. Workers exempt from federal minimum-wage rules remain excluded when this rule is the only reason their employer is covered. Employers, including state and local governments, are covered after employing at least two workers during a calendar year. Coverage then lasts through that year, and the employee definition uses a minimum age of 16. Franchisees are the sole employer of workers they pay or provide benefits to, unless the franchise agreement says otherwise. Summer-camp jobs lasting no more than four months are excluded. Certain harvest piecework employers remain excluded until a designated board sets a piecework scale worth at least the minimum wage. Companionship and certain childcare work follow special federal-law rules involving age and casual work averaging no more than 20 hours weekly. The law preserves applicable minimum-wage and overtime rights existing on September 30, 2006. Michigan’s Department of Labor and Economic Opportunity administers the law.
Sponsors & Cosponsors
Sponsor
Kevin Hertel
Democratic • Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
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
ASSIGNED PA 0001'25 WITH IMMEDIATE EFFECT
2/25/2025SenateFILED WITH SECRETARY OF STATE 2/21/2025 1:08 PM
2/25/2025SenateAPPROVED BY GOVERNOR 2/21/2025 11:38 AM
2/25/2025SenatePRESENTED TO GOVERNOR 2/20/2025 8:42 PM
2/20/2025SenateORDERED ENROLLED
2/20/2025SenateFULL TITLE AGREED TO
2/20/2025SenateGIVEN IMMEDIATE EFFECT
2/20/2025Senatereturned to Senate
2/19/2025Houseinserted full title
2/19/2025Housepassed; given immediate effect Roll Call #8 Yeas 69 Nays 40 Excused 0 Not Voting 1
2/19/2025Houseread a third time
2/19/2025Houseplaced on immediate passage
2/19/2025Houseplaced on third reading
2/19/2025Houseread a second time
2/19/2025Houseplaced on second reading
2/19/2025Housemotion to discharge committee approved
2/19/2025Housenotice given to discharge committee
2/18/2025Housereferred to Committee on Select Committee on Protecting Michigan Employees and Small Businesses
2/18/2025Houseread a first time
2/18/2025Housereceived on 02/14/2024
2/18/2025HousePASSED ROLL CALL # 7 YEAS 20 NAYS 12 EXCUSED 5 NOT VOTING 0
2/13/2025SenateSUBSTITUTE (S-10) ADOPTED
2/13/2025SenatePLACED ON IMMEDIATE PASSAGE
2/13/2025SenateRULES SUSPENDED
2/13/2025SenatePLACED 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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