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Michigan Reinstates Prevailing Wage For State Construction Projects

October 18, 2021

Earlier this month, Governor Gretchen Whitmer of Michigan announced that the State would once again require state contractors and subcontractors to pay prevailing wage on state-funded projects. The intent of reinstating the prevailing wage is to help ensure that construction workers can earn a fair wage while saving taxpayers time and money on essential state infrastructure projects.

The Michigan legislature repealed Michigan’s prevailing wage in June 2018, which eliminated the State’s prevailing wage requirement. However, the 2018 law included a clause allowing the Michigan Department of Technology, Management, and Budget to put it back in state contracts, which Governor Whitman is now implementing.

Governor Whitmer hopes that reinstating the prevailing wage will rebuild confidence among Michigan workers and employers by providing a fair and equal bidding process for highly trained workers to earn a decent wage. Nonetheless, opponents have vowed to fight the new policy in court, arguing that the prevailing wage will raise costs and reduce the amount of building that could be achieved for taxpayers.