MI SB1177

Establishes a series of minimum wage increases beginning January 1, 2013, with rates of $7.90, $8.40 (July 1, 2013), $9.00 (January 1, 2014), $9.50 (July 1, 2014), and $10.00 (January 1, 2015), or the federal minimum wage if higher.

Creates an automatic annual adjustment mechanism beginning in January following any year with no change to the state or federal minimum wage, indexed to the Consumer Price Index for urban wage earners and clerical workers (CPI-W), with adjusted rates published by February 1 and effective April 1.

Changes the tipped employee minimum wage from a fixed $2.65 per hour to 50% of the applicable minimum wage established in section 4, provided gratuities equal or exceed the difference and other conditions are met.

Requires employers to inform tipped employees of the provisions allowing the reduced minimum wage based on gratuity income.

Defines "gratuities" as tips or voluntary monetary contributions reported by employees for federal insurance contribution act purposes.