Michigan Prevailing Wage Information
GENERAL INFORMATION
Michigan's Prevailing Wage law covers construction workers employed on state financed or sponsored construction projects. Under this act the Wage and Hour Division establishes wage and fringe benefit rates to be paid construction workers on state projects. State projects include new construction, alteration, repair, installation, painting, decorating, completion, demolition, conditioning, reconditioning, or improvement of public buildings, schools, public works projects, bridges, highways or roads authorized by a contracting agent.
A covered project must meet these requirements:
1) Be a state project authorized by a contracting agent;
2) Require or involve the employment of construction workers;
3) Be sponsored or financed in whole or in part by the state;
4) Have a contract entered into pursuant to advertisement and invitation to bid; and
5) Require in the contract the payment of prevailing wage rates
The Michigan Department of Licensing and Regulatory Affairs determines prevailing rates pursuant to the Prevailing Wage Law, Act 166, P.A. of 1965. The purpose of establishing prevailing rates is to provide rates of pay for workers on construction projects for which the state or a school district is the contracting agent and which is financed or financially supported by the state.
By law, prevailing rates are compiled from the rates contained in collective bargaining agreements which cover the locations of the state projects. The prevailing rates provide an hourly rate, which includes wage and fringe benefit totals for designated construction mechanic classifications. The overtime rates also include wage and fringe benefit totals. Please pay special attention to the overtime and premium pay requirements.
The department establishes the prevailing rate for each classification of construction mechanics requested by a contracting agent prior to contracts being let out for bid on a state project. If a contract is not awarded or construction does not start within 90 days of the date of the issuance of rates, a redetermination of rates must be requested by the contracting agent.
Requests for rates from the general public are provided based on classifications and rates on file. There is a charge for this service.
THRESHOLD
Under Michigan Prevailing Wage law, there is no threshold requirement.
TIMING
For commercial prevailing wages, there is a rolling update. This means changes to the prevailing wage rates are made depending on the changes in the collective bargaining agreement. The wages posted on the Michigan Department of Labor website are not the most current number (quarterly updates only). Therefore, please request wages for the most current rates.
INCREASES
Prevailing wage rates are updated each time a trade submits rate changes to the Wage and Hour Division. There is no additional increase other than what is submitted to this division.
OVERTIME
Daily overtime might be different for each trade. The Wage and Hour Division uses a nine-digit code for each trade to describe how overtime applies for different times of a work week. Please See “Overtime Requirements” sheet under “Helpful Links” for additional information
WORKING ON WEEKENDS
For most trades, work on Saturday is variable but work on Sunday generally requires a payment of double time. Please See “Overtime Requirements” handout for additional information.
WORKING ON LEGAL HOLIDAYS
Michigan prevailing wage law mandates double time pay to employees for most trades. The Wage and Hour Division does not specify which holidays contractors are paid for.
SHIFT DIFFERENTIALS
Michigan prevailing wage law doesn’t establish different wage rates based on the shift worked.
FRINGE BENEFITS
Under Michigan prevailing wage law, “prevailing wages” includes a payment of the basic hourly wage rate plus fringes. Prevailing wage is satisfied when wages plus fringe benefits paid to a worker are equal to or greater than the required rate. The following are examples of fringe benefits: 1) vacation pay; 2) sick pay; 3) paid time off; 4) holiday pay; 5) health and welfare contributions; 6) medical insurance; 7) pension/retirement contributions; 8) a bonus; 9) profit sharing distribution; 10) life insurance; 11) contributions to an employee’s annuity fund or tax deferred savings plan; 12) education/training fund contributions; 13) scholarship contributions; 14) supplemental unemployment fund contributions; and 15) other bone fide fringe benefits.
TRAINING CONTRIBUTION
Michigan prevailing wage law includes training contributions as part of the prevailing wage rate. Moreover, the contributions vary among trades.
APPRENTICE REQUIREMENTS
The Wage and Hour Division requires that apprentices are registered with the US DOL Apprenticeship Program.
CONTRACTOR LICENSING
The Wage and Hour Division doesn’t regulate licenses required of the contractors. Contractors that work on residential or a combination of residential and commercial buildings must be licensed. Electricians, plumbers, and HVAC contractors must also be licensed.
Please visit the following cite to determine if a particular tradesman/contractor is licensed:
Search for a Licensed Contractor or Tradesman
For additional information on licensing requirements, please visit the following site:
Michigan's Contractor Licensing Policy
DUTIES OF CONTRACTOR/SUBCONTRACTORS
Contractors and subcontractors must perform the following duties:
1) Post the prevailing rates at the construction site;
2) Pay the prevailing wage rate;
3) Maintain records of the wages and fringe benefits paid to all construction workers; and
4) Make all records available for inspection when requested by the contracting agent or the department
Posting wage rates
Section 5 of Public Act 166 of 1965, as amended, being MCL 408.555 Prevailing wage and fringe benefit rates; posting by contractors [M.S.A. 17.256(5)]; states:
"Every contractor and subcontractor shall keep posted on the construction site, in a conspicuous place, a copy of all prevailing wage and fringe benefit rates prescribed in a contract and shall keep an accurate record showing the name and occupation of and the actual wages and benefits paid to each construction mechanic employed by him in connection with said contract. This record shall be available for reasonable inspection by the contracting agent or the commissioner."
Classification of workers
Please note that the Wage and Hour Division does not classify workers or resolve classification disputes. The contracting agent for a project has the right and responsibility for the quality of work and for determining the work classifications needed on a project.
POSTING REQUIREMENTS
The following Michigan Workforce Opportunity Wage Act poster is required by law to be posted in the work place if you are not covered by the Federal Fair Labor Standards Act of 1938, as amended (FLSA) or federal minimum wage provisions would result in a lower minimum wage than provided in the Michigan Workforce Opportunity Wage Act .
The links below are available to the public for posting. Please note that employers who post Public Act 138, of 2014, as amended, or WHD 9904 MIOSHA Required Poster, General Requirements—Minimum Wage and Overtime, will be considered in compliance with the posting requirements of Section 7, being MCL 408.417.
Public Act 138, of 2014, as amended Michigan Workforce Opportunity Wage Act
WHD 9904 MIOSHA Required Poster, General Requirements - Minimum Wage and Overtime
Additional postings relating to workplace safety may need to be posted, use this link to MIOSHA publications to see required MIOSHA postings.
PENALTIES
Pursuant to Section 7, "any person, firm, corporation or combination . . . including the officers of any contracting agent" that violate any provision of the Michigan Prevailing Wage Act is guilty of a misdemeanor. Moreover, under Section 6, the contracting agent, by written notice to the contractor and sureties of the contractor known to the contracting agent can terminate the contractor's right to proceed with that part of the contract if less than the required prevailing wages have been paid. The party may complete the contract with a separate agreement with another contractor and the original contractor and his sureties will be liable.
Filing a complaint for nonpayment of wage or fringe benefits
The Payment of Wages and Fringe Benefits Act covers most Michigan employers and employees. An employee who believes that his or her employer has violated this act may file a complaint with the Wage and Hour Program. A complaint alleging non-payment of wages or fringe benefits must be filed within 12 months of the alleged violation.
A complaint alleging discharge or wage reduction as a result of filing a wage or fringe benefit complaint or asserting a right provided by the Payment of Wages and Fringe Benefits Act must be filed within 30 days of the discharge or date wages were reduced.
The time required to complete an investigation depends upon the number of cases under investigation, the complexity of the claim, and cooperation of the employer and employee. Employers are required to provide records and other relevant information. Employees may be asked to assist in the resolution of their claims by providing personal copies of fringe benefit policies, employment contracts, a personal record of hours worked, sales or customer identification if commissions are claimed and other relevant information. Employers and employees may also be asked to attend a meeting to clarify facts and negotiate a settlement of the complaint.
If a claim cannot be informally resolved, the Wage and Hour Program will issue a written determination that the employee or employer may appeal. A hearing before an administrative law judge will be scheduled. The employer and employee are expected to attend the administrative hearing to give testimony regarding the claim. The hearings officer will affirm, modify, or rescind the determination. That decision can be appealed to circuit court.
Each year the Wage and Hour Program receives over 5,000 claims and collects more than $2.0 million in wages and fringe benefits owed Michigan workers. The Wage and Hour Program does not guarantee payment of wages and fringe benefits earned. Collection depends upon the employer's financial ability to pay, business closure, bankruptcy filing, or location of money and assets. There is no charge for filing a complaint.
Please See, for additional information:
WHD-9430 Employment Wage Complaint Form
Sample WHD-9430 Employment Wage Complaint Form
Spanish Version of WHD-9430 Employment Wage Complaint Form
Arabic Version of WHD-9430 Employment Wage Complaint Form
DEBARMENT
Michigan prevailing wage law does not include a debarment provision. However, as a public service to contracting agents and other stakeholders, the Wage and Hour Division has posted on its website a listing of those who have violated the state’s prevailing wage law. The listing includes the names and addresses of contractors and subcontractors that have been found in violation of the Act based on complaints from individuals and third parties. Please See link below for a list of violators:
www.michigan.gov/wagehour
HELPFUL LINKS
Michigan Department of Licensing & Regulatory Affairs
Act 166 (Michigan prevailing wage law)
Act 166 2014 Manual
FAQ
Workforce Opportunity Wage Act
Information sheet-Prevailing wages on state projects
Prevailing wage overtime requirement
Employment Wage Compliant Form
Contracting Agent Responsibilities
General Information—commercial rate schedule by county
Road builders general rate information
Posting requirements
Prevailing wage rate commercial survey
Prevailing wage commercial survey form
CONTACT INFORMATION
Main Office
Michigan Department of Licensing and Regulatory Affairs
Wage & Hour Division
7150 Harris Dr.
P.O. Box 30476
Lansing, Michigan 48909-7976
Phone: 517-322-1825
Georgia Harris
Wage and Hour Division, Acting Director
MI Occupational Safety & Health Administration
MI Department of Licensing of Regulatory Affairs
7150 Harris Drive
1st Floor, B-Wing
Lansing, MI 48913
Phone: 517-636-6243
