Labor: hours and wages; employer offset of wages due an employee in a pay period based on the amount of gratuities the employee receives; prohibit. Amends sec. 4d of 2018 PA 337 (MCL 408.934d).

HB 4168 prohibits employers from using tips that exceed the minimum wage difference to cover other wage payments. It directly affects tipped workers (such as restaurant servers) and their employers by ensuring tips only count toward meeting minimum wage requirements up to specific percentages (starting at 38% in 2025 and rising to 50% by 2031). The bill requires written notice about tip distribution, mandates record-keeping for three years, and clarifies that tips remain the employee’s property regardless of wage calculations. Employers cannot offset wages for shifts with low tips using excess tips from other shifts.