Michigan Aggregates Association

Michigan Prevailing Wage Repealed

On Wednesday, June 6, 2018 the Michigan Legislature voted to support a citizens’ initiative to repeal Michigan’s prevailing wage law.  The House’s 56-53 vote came a little more than an hour after the Senate’s 23-14 vote in support of the repeal.  The repeal will become effective upon the filing of the initiative petition with the Office of the Great Seal.

Governor Snyder does not support repeal; however, his signature is not required for citizens’ initiatives.  If the initiative was not acted on by the legislature it would have been placed on the ballot in November.

As you may recall, Michigan’s Prevailing Wage law covered construction workers employed on taxpayer financed or sponsored construction projects. Under this act, the Wage and Hour Division established wage and fringe benefit rates to be paid construction workers on “state funded” projects (no federal funding).

The Michigan Department of Licensing and Regulatory Affairs determined prevailing rates pursuant to the Prevailing Wage Law, Act 166, P.A. of 1965. The purpose of establishing prevailing rates was to provide rates of pay for workers on construction projects for which the state or a school district was the contracting agent and which was financed or financially supported by the state.

While this repeal will affect projects funded with state funding (i.e. school, local funded road and bridge projects, etc.) it will not impact MDOT or county/city road and bridge projects funded with federal funds.  If any federal funding is utilized then Davis-Bacon Wage Rates are still applicable.