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Plain Unveiled Reforming Prevailing Wage Formula

May 18, 2018

Representative Martin Howrylak (R-Troy) announced his proposal to align Michigan’s prevailing wage formula with the national Davis-Bacon Act wage structure. The state’s prevailing wage laws are applied to construction workers on state financed or sponsored projects. The Department of Licensing and Regulatory Affairs compiles the rates contained in collectively bargained agreements covering the locations of the project. The rate provides an hourly rate and fringe benefits.

According to the bill sponsor, by using the federal government’s structure, administrative costs to the state would be reduced. In addition, the bill includes a provision that public construction jobs receiving less than $50,000 in state funding be exempt from the prevailing wage law. The bill has been referred to the House Commerce and Trade Committee for consideration.

Currently in Michigan there is an effort to repeal Michigan’s Prevailing Wage Law through a ballot proposal.

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