On June 6, 2018, the Michigan legislature passed legislation that repealed Michigan’s long-standing prevailing wage law, PA 166 of 1965.
PA 166 of 1965 required prevailing wages and fringe benefits on state projects involving public buildings, schools, works, bridges, highways and roads that were authorized by a contracting agent. The law defined “contracting agent” as “…any officer, school board, board or commission of the state, or any state institution…authorized to enter into a contract for a state project…”
In lay terms, the repeal of PA 166 of 1965 simply eliminates the requirement for state prevailing wages on school and public works projects contracted by state supported institutions, agencies and departments.
Per the Michigan Department of Licensing and Regulatory Affairs (LARA), Wage & Hour Division, the repeal of PA 166 of 1965 does not prohibit other local public agencies (county, city, village, etc.) or private entities from requiring a “prevailing wage” on projects they may be contracting for that may or may not involve some state funding.
So, in reality, you may still find public works projects let by other public and private owners where the bid documents may still include a prevailing wage and reporting protocol requirement. In those instances, we recommend that bidders contact those owners pre-bid to verify the inclusion of a prevailing wage requirement. If the owner verifies it is their intent to bid and award the contract with a prevailing wage requirement, then it is a contractual requirement that all bidders should conform to.
To get more information on the implementation of the repeal of state prevailing wage, visit the LARA, Wage & Hour Division, Prevailing Wage website where they are maintaining updated information and a listing of Frequently Asked Questions.
We will continue to keep the MITA membership informed about all developments related to the repeal of Michigan’s prevailing wage law as they occur.
If you have any questions, please contact Glenn Bukoski, VP of Engineering Services, at glennbukoski@thinkmita.org, or Rachelle VanDeventer, VP of Industry Relations, at rachellevandeventer@thinkmita.org. You can call them in the MITA office as well at 517-347-8336.
