Michigan Implements Updated Prevailing Wage Regulations

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The Michigan Prevailing Wage for State Projects Act, effective on February 13, 2024, closely resembles a previous prevailing wage regulation repealed in 2018. It mandates that construction workers on state-sponsored or financed projects receive wages and benefits comparable to those in the same locality on similar contracts.

Within the framework of the Act, a “state project” encompasses various construction activities authorized by a contracting agent, which includes new construction, alterations, repairs, installations, and improvements of public buildings, schools, infrastructure, bridges, highways, or roads. Additionally, construction mechanics, defined as skilled or unskilled workers involved in construction projects, must receive wages and benefits meeting or exceeding the prevailing rates established by the state based on union-level standards.

The Act also requires Contractors to enroll apprentices in Department of Labor-approved training Programs and maintain payroll records for at least three years. Future construction contracts must include language ensuring wages and fringe benefits are not lower than established rates, with nondiscrimination and nonretaliation provisions and the right for aggrieved employees to take legal action against contractors for damages or injunctive relief.

The Act applies to projects with bid acceptance dates on or after its effective date, excluding contracts entered before or with bid acceptance dates before this date. Contractors should seek guidance from experienced professionals to help them navigate Prevailing Wage Act issues effectively and minimize the risks and potential penalties linked with non-compliance.