HB 4492 Michigan House · 2025-2026 Regular Session

Labor: hours and wages; sharing gratuities with other employees; allow an employer to require. Amends sec. 4d of 2018 PA 337 (MCL 408.934d).

House Bill 4492 proposes changes to the state's wage act regarding employees who receive gratuities, commonly known as tipped employees. Currently, employees can voluntarily share their tips with co-workers. This bill would allow employers to require tipped employees to share their gratuities with other employees, provided the initial tipped employee's gratuities still meet a specific wage threshold. This change directly affects employees who earn tips and their employers by altering the rules for gratuity distribution within a workplace.
Bill status passed both 4 of 5 stages cleared
Introduction
May 2025
Committee Review
Jan 2026
House Passage
Jan 2026
Senate Passage
Jan 2026
Governor
Introduced May 13, 2025 Last action Jan 21, 2026
Maddy AI version diff · 1 comparison

What changed between versions

House Introduced Bill As Passed by the House · 5 edits · Jan 14, 2026
MODERATE
This bill amends Michigan's improved workforce opportunity wage act to clarify when tipped employees must receive a higher minimum wage based on gratuities. The changes update the wage percentage schedule, add requirements for employer notification and employee consent, and clarify definitions of gratuities for federal tax purposes.
Scope change
The bill's scope remains focused on tipped employees, but eligibility criteria for the higher wage requirement were modified to include new conditions about gratuity amounts and employer notification.
REQUIREMENT

Added new requirements that employers must inform employees in writing about the wage provisions before hiring, and employees must provide written consent.

ELIGIBILITY

Modified the conditions for when the higher minimum wage applies to include that gratuities must equal or exceed the difference between the standard minimum wage and the tipped minimum wage.

DEFINITION

Added language clarifying that gratuities must be 'proven gratuities' as indicated by federal insurance contribution act declarations.

TIMELINE

Updated the schedule of minimum wage percentages for years 2025 through 2031, maintaining the same percentage increases but renumbering the subsections.

TECHNICAL

Renumbered subsections (6) and (7) to (5) and (6) respectively, correcting the numbering sequence.

Floor votes · House Jan 14, 2026

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
14
Key actions
3
Committee
4
Jan 21, 2026
Committee
REFERRED TO COMMITTEE ON LABOR
upper
Jan 21, 2026
Upper · Passed
PASSED BY HOUSE WITH IMMEDIATE EFFECT
upper
Jan 14, 2026
Lower · Passed
passed; given immediate effect Roll Call #7 Yeas 57 Nays 52 Excused 0 Not Voting 1
lower
Dec 11, 2025
Committee
referred to second reading
lower
Dec 11, 2025
Lower · Passed
reported with recommendation without amendment
lower
May 13, 2025
Committee
referred to Committee on Economic Competitiveness
lower
May 13, 2025
Introduced
introduced by Representative Rep. Mike Mueller
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Mike Mueller
Mike Mueller
RRepublican
MI
72