06/16/2008
This week in Lansing:
Legislature
Michigan House and Senate
The Michigan House and Senate are in session this week.
IssuesTaxes
NFIB continues efforts to eliminate the Michigan Business Tax surcharge and expand the ability of businesses to use the Alternative Profits Tax filing method instead of the MBT. One proposal being floated would raise the current state sales tax by 1 percent (to 7 percent) to fund the elimination of the 22 percent surcharge.
At a policy conference on Mackinac Island earlier this month, the governor suggested that if business groups would help her pass prison reforms she would use some of the savings to lower the MBT surcharge. Subsequent inquiry has revealed no specific reform plan or details from the governor's office.
Budget
Appropriations committees of both chambers continue meeting this week to complete the 2009 budget.
Regulations
Bills that purport to make Identity Theft more difficult will be the subject of a House Judiciary hearing on Wednesday. NFIB continues to oppose the bills as they impose new and redundant record keeping requirements on business and open businesses to liability for that information.
Legislation to control in-state water withdrawals on private property continue to move through the House this week. Although the bills are touted as necessary to limit Great Lakes water diversion to other states, in actuality they begin a process of control and regulation of private water use with permitting required by the DEQ. NFIB opposes the bills; however, a number of business organizations are supporting Senate versions of the bills.
Michigan Minimum Wage Increases July 1
For those over 18, the state minimum wage is $7.15 per hour, and increases to $7.40 per hour, effective July 1. These wages are currently higher than the federal minimum wage.
There is a Michigan youth sub-minimum wage for those under 18 years of age. Businesses can pay these young workers 85 percent of the adult minimum wage. On July 1, 2008, the Michigan sub-minimum wage increases to $6.29, but only until July 24.
Federal Minimum Wage Trumps Michigan Minimum Wage
However, where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages. This becomes an issue in Michigan in July 24 of this year as the federal minimum wage becomes $6.55 an hour versus Michigan's youth wage of $6.29 effective on July 1. Since the federal rate is higher, the $6.55 rate is the minimum wage that applies for those under 18 years of age. Technically, you could pay the lower Michigan wage of $6.29 from July 1 to July 24 when the higher fed rate kicks in.
To make it even more confusing, there is also a special wage for "tipped" employees who are 18 years of age and older. These workers must be paid $2.65 per hour provided they report in writing tips which when added to $2.65 will equal or exceed the state's minimum hourly rate. In other words, the wage and tips combined must equal or exceed $7.15 an hour until July of this year, at which time the wage and tips combined must equal or exceed $7.40 an hour.
Employers can direct their Internet browser to the Wage and Hour Division Web site where there is more information and a question and answer area.
PoliticsCandidates
NFIB candidate surveys for the 2008 elections were sent to state House candidates with a return deadline of June 13. Staff will begin perusing the surveys this week and determining which candidates pass muster on small business issues. In addition, staff continues to meet with and interview potential candidates.
NFIB membersImmigration Law Webinar for Members
On Wednesday, June 18, the Small Business Legal Center will be holding another webinar as part of its year long series titled, "Staying on Top of the Immigration Crackdown: Tips to Ensure that Your Business Employs an Authorized Workforce." The webinar will cover:
- Filling out the Form I-9: Which employees need to fill this out? What types of documents can be used to prove identity? What do I do if I have current employees that have not filled one out?
- The Federal E-Verify Program: Some states require participation in this program. What is it and what should I expect when I sign up?
- Answers to your other immigration compliance questions.
When: June 18 at 2 p.m. Eastern time.
Members can find more information or register to attend.
