Judge Upholds Prevailing Wage Policy

Liz Gullett

Oct 14, 2022

A Michigan court sided with the State of Michigan in favor of its prevailing wage policy. Michigan Court of Claims Judge Douglas Shapiro agreed the Department of Technology, Management, and Budget (DTMB) did not violate the law when it implemented its prevailing wage policy.

In July, a lawsuit was filed against the State asking the Court to enjoin DTMB from requiring prevailing wages for state contracts in excess of $50,000. The suit claimed the State can’t have such a requirement because of the repeal of Michigan’s prevailing wage law in 2018. In its ruling, the Court agreed the department did not violate separation of powers when setting the policy. The Court also agreed that DTMB was not required to follow the formal rulemaking process of the Administrative Procedures Act of 1969 when implementing the policy because the policy fits within an exception to the rulemaking requirements.

To read the order from the Court of Claims, please click here.

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