Since 2007, the state prevailing wage rules pertaining to truck drivers have changed multiple times as the State of Michigan Wage and Hour Division (W&HD) issued new interpretations of the law which progressively made compliance more inclusive. Under the current W&HD interpretation (issued in 2009) only bona fide owner-operators and truck drivers employed by a company selling a product or material to the contractor are not be covered by state prevailing wage. All other truck drivers, regardless of the method of hire (employee, subcontract, purchase order, invoice, or brokered), are covered by the state prevailing wage provisions.
MITA is happy to report that the rules are about to change again …. but this time the change is for the better!
Earlier this month, MITA met with the leadership of the new Department of Licensing and Regulatory Affairs (LARA) to continue the industry’s advocacy for consistency in the rule interpretations between federal Davis-Bacon and state Prevailing Wage law as they relate to truck drivers. Citing less confusion, better compliance, and simplified enforcement as the benefits of a consistent set of rules, MITA proposed that LARA/W&HD adopt the US Department of Labor (USDOL) definitions for “site of work” and “de minimis”. By adopting these USDOL definitions LARA could establish state prevailing wage rules that mirror the federal Davis-Bacon prevailing wage rules for truck drivers.
Yesterday, LARA leadership informed MITA that they have accepted MITA’s proposal acknowledging the benefits to compliance and enforcement of a consistent set of rules related to the coverage of truck drivers by prevailing wage. MITA will continue to work with W&HD as they modify their policy to incorporate the “site of work” and “de minimis” definitions and criteria.
LARA’s acceptance of MITA’s proposal should greatly simplify life for all contractors and truck drivers as a consistent set of prevailing wage rules will apply to truck drivers regardless of whether the project is federally or state funded.
Stay tuned to future bulletins, as MITA will keep you fully informed of the new state prevailing wage rules for truck drivers as they are developed.
If you have any questions or comments, please contact Glenn Bukoski or Doug Needham by email or at the MITA office at 517-347-8336.
