Michigan law prohibits local regulation of minimum wages

Michigan Governor Rick Snyder signed legislation on June 30, 2015, to ban local governments from adopting and enforcing new ordinances, policies and resolutions that would regulate the wages, benefits and other terms and conditions of employment of private employment.

House Bill 4052 prohibits local governmental bodies from adopting a minimum wage rate that is higher than the state minimum hourly wage or, if applicable, higher than the minimum wage provisions of the federal Fair Labor Standards Act of 1938, 29 U.S.C. 201 to 219, unless those federal provisions would result in a lower minimum hourly wage that provided under state law.

Local governments would also be prohibited from requiring employers to pay employees a wage or fringe benefit based on wage and fringe benefit rates prevailing in the locality–this restriction would not apply to state projects subject to prevailing wages under Sections 408.551 to 408.558 of the Michigan Complied Laws, however.

The measure would also prohibit a local government from adopting, enforcing or administering an ordinance, legal policy, or local resolution that would do any of the following:

• Regulate information an employer must request, require or exclude on an employment application form, except that this would not prohibit criminal background check requirements in connection with receipt of a license or permit from the local governmental body;

• Regulate work stoppage or strike activities of employers and employees or the means by which employees may organize;

• Require an employer to provide an employee with paid or unpaid leave time;

• Regulate hours and scheduling that an employer is required to provide to employees (this would not impact local governments from limiting the hours that a business may operate, however);

• Require an employer or its employees to participate in any educational apprenticeship or apprenticeship training program that is not required by state or federal law;

• Require an employer to provide to an employee any specific fringe benefit or any other benefit for which the employer would incur an expense; or

• Regulate or create administrative or judicial remedies for wage, hour or benefit disputes.

The new law does not prohibit a local government from setting terms and conditions under a voluntary agreement with an employer providing direct services to the local governmental body or in connection with the receipt of a grant, tax, abatement or tax credit. Further, the measure would not impact existing agreements voluntarily entered into and in effect prior to October 1, 2015. (Public Act 105 (H.B. 4052), Laws 2015, approved June 30, 3015; House Bill 4052, enacted on June 30, is expected to be assigned Public Act 105 on July 14, 2015, with immediate effect; http://www.legislature.mi.gov/documents/2015-2016/billenrolled/House/pdf/2015-HNB-4052.pdf.)

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