Michigan Prevailing Wage Act Reinstated for State Projects as of Feb. 13

The Michigan Prevailing Wage Act will require every contractor and subcontractor in Michigan to pay the prevailing wage and benefit rates to employees working on most state-funded construction projects. The act will apply to public school projects except those funded by millages that were put in place before the effective date of Feb. 13, 2024.

The Act requires contractors to post the prevailing wage rates at each construction site and keep accurate records of actual wages and benefits paid to workers. A minimum of three years of payroll on all projects are covered by the Michigan Prevailing Wage Act. The policy will also require that specific language be included in future construction contracts verifying that wages and fringe benefits rates are not less than the established prevailing wage and fringe benefit rate.

Under the Act, the Michigan Department of Labor and Economic Opportunity (DLEO) is granted the authority to administer and enforce these requirements. This includes the ability to conduct investigations of alleged prevailing wage violations.

Before any new state-funded construction projects are bid, the commissioner of the DLEO will determine the prevailing rates of wages and fringe benefits for all classes of employees hired for the project. All contractors will have to include a schedule of those rates as a part of the specifications for work, and the rates must be printed on the bidding forms.

Compliance with the reinstituted Prevailing Wage Act is important, and for more details and specific information, you can view the Michigan Department of Labor and Economic Opportunity webinar in full.