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HB 4492

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

2025-2026 Regular Session Introduced by Mike Mueller

Michigan bill would permit employers to require employees to share tips with other workers, overriding current worker-protective gratuity restrictions.

referred to second reading
#labor:hoursandwages
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Bill Summary · HB 4492

Legislative bill overview

HB 4492 would amend Michigan's Tipping Act to allow employers to require employees to share gratuities with other workers. Currently, Michigan law restricts employers' ability to mandate tip-pooling arrangements. This bill would expand employer authority over how tips are distributed among staff.

Why is this important

Tip pooling affects millions of service workers' take-home pay. The change could redistribute earnings from frontline workers (servers, bartenders) to support staff or management, potentially reducing individual worker compensation. It also reflects broader tension between employer operational preferences and worker income protection.

Potential points of contention

  • Worker income protection: Service workers rely on tips as primary income; mandatory pooling could reduce individual earnings, particularly for high-performing employees
  • Current law rationale: Michigan's existing restrictions were designed to protect workers from tip exploitation; this reverses that protective framework
  • Implementation fairness: Unclear how mandatory pooling formulas would be set, monitored, and whether they could be manipulated by employers to their advantage

Compiled from official sources — confirm details with the bill’s official record.

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